Page 20 - Investment Advisor February/March 2023

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Dathan Lumpkins Not only did I get a chance to build something special for
President, Lumpkins Private Wealth myself and my family, but I’ve also been able to provide a
more meaningful experience for the clients I serve.
Management, LLC

impressed by the breadth and quality of sup- Since founding his practice, Cowan has Challenge #1: Expanding
port for the independent advisor community. regularly had the value of his business Responsibility
“If you don’t want to be the branch manager or estimated by a third-party consultant, a
hire your own employees or run payroll, there process that has provided insights along When reflecting on his first year on his own,
are dozens of providers to help you with that,” the way. For example, early on, Cowan Lumpkins recalls he felt like he “got punched
she says. dropped his name from his brand. “If your in the face” trying to balance the twin
name is part of the company name and responsibilities of entrepreneur and finan-
For others like Lumpkins, choosing an something happens to you, the valua- cial advisor. Over time, however, he found
independent model helped add flexibility to tion of your business will be negatively the balance that helped drive his business
his planning conversations. Since becoming impacted,” he explains. toward success.
independent, Lumpkins has helped clients
with risk management, dynasty trusts for When Niewierski’s business got its first valu- “Change is automatic, but progress is
their grandchildren, qualified plans for their ation, she and her partner, too, immediately not. This business is evolving and I really
businesses, and long-term care planning. By removed personal names from their brand to wanted to put myself, my career, and my
going deeper with his client relationships, he help build longer-term value. family in the best position going forward,”
has gained C-suite referrals, board opportuni- Lumpkins says. “That’s the reason why it
ties, and speaking engagements. In addition, periodic valuations have helped made sense for me to make the transition
Niewierski’s team with future planning, giv- to independence.”
“Going independent was an extremely pos- ing them ideas for how her partner,
itive experience, not only for our clients but 20 years her senior, may want to exit the For Niewierski, her greatest fear involved
also for our bottom line,” Lumpkins adds. business eventually. “The freedom we have dealing with the uncertainties of the move.
to structure an eventual buy-out any way we As it turned out, her fears were largely
Building Enterprise Value want is exciting for us,” she says. unfounded.
In 2020, the ability to build value topped Breaking Away: “There are so many different ways to run
the chart of reasons why advisors Risks and Rewards a practice and the amount of support you
switched firms. According to Cowan, the will get from your community of other
2
ability to grow equity in an independent The path to independence can be rewarding, independent advisors gives you the ability
practice that can be monetized in the but those rewards can come at a significant to make your business your own. Quite the
future can be an important consideration. cost, especially in the first year. opposite of not having support, we had
“It’s something independence offers that an overwhelming amount of support,” she
the employee model does not,” he says. says.

3 Independence: The View from the Other Side

IA_Full Page Ads_February-March_2023 updated.indd 18 1/12/2023 5:42:07 PM