Sellers Crowd IBD Marketplace

 

For Sale MediumBuying an independent broker dealer isn’t exactly the latest get-rich quick scheme. A glut of IBD’s on the market will likely cause asking prices to fall. As I’ve written previously, IBDs are a skinny margin business. Even smaller producers are on a 90% payouts and markups on ticket charges are an important source of profits. Now with unsympathetic regulators piling on new and expensive rules and with the looming mischief that will be caused by the adoption of a fiduciary standard, there’s real cause for concern in the IBD world.

Photo: Steve Harwood

About Mark Elzweig

I am an executive search recruiter with an inside track on financial advisors, the asset management industry, and Wall Street. My work has appeared in numerous publications including On Wall Street,AdvisorOne, and Fund Fire. Journalists regularly seek me out, so you catch my bon mots in The Wall Street Journal, Research Magazine, Reuters, and more. You can follow me on Twitter @elzweig or you can reach me directly at 212-685-7070 or elzweig@elzweig.com.
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