The Golub Group is reaping the rewards of going independent.
The Golub Group was founded by Michael Golub with several partners in 2003. Golub, who began his career in 1967, was already doing a brisk business through the broker-dealer. He and his partners were bringing in over $1 million per year revenue, with a client base of 240 high-net-worth individuals and $180 million in assets under management.
What spurred them to consider forming their own independent advisory business? “Clients didn’t value our broker-dealer,” says partner Colin Higgins. “We finally had to ask: why are we paying out half our income to a firm that’s not helping us?”
After exploring the option of going independent, researching the risks and performing careful planning, the partners decided that they could keep their current clients, but provide them with better service and build an equity stake in their business by establishing as a new, independent entity, apart from their broker-dealer employer.
Despite an aggressive campaign by their former employer to retain the group’s clients, the partners managed to keep 96% of client assets at the time of the move. And, within 15 months of opening up shop, the firm increased client assets under management by more than 30%.
“My wish for fellow advisors is to do this earlier than I did,” says Golub. “This reward that we’re all reaping now is precisely because we cut ourselves loose.”
The mention of the above firm is not, and should not be construed as a recommendation, endorsement or sponsorship by Schwab. This firm is not affiliated with or an employee of Schwab. You must decide whether to hire any firm and the appropriateness of their services for you or your firm. Schwab does not supervise third party firms and takes no responsibility to monitor the services they provide to you. (1206-8162)
