RELATIONSHIPS THAT LIFT YOU UP - ceteraadvisornetworks.com · because our advisors flat out said, ‘If you go there, we are not going with you.’ Once they met the Cetera people,

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How HBW Partners Found a Safety Net—and Unprecedented Support—in Cetera® Advisor Networks

RELATIONSHIPS THAT LIFT YOU UP

“The single most important thing in business and in life is with whom you choose to associate,” said Barney Hellenbrand, chief executive officer of HBW Partners, a formerly independent broker-dealer that joined Cetera Advisor Networks in June 2017.

Hellenbrand never intended to join a larger broker-dealer and would have remained independent indefinitely if he could. One of the founding members of HBW Partners, which was formed in October 1991 and incorporated in September 1994, Hellenbrand loved the freedom that came with independence, but financial pressure due to ever-increasing compliance requirements made the situation untenable.

“Ultimately, it was the regulatory burdens that made it impossible to continue as a firm,” said Hellenbrand. Not only had the complexity and expense of doing business skyrocketed due to regulation, but once-reliable sales of investment products such as variable annuities had also begun to plummet. HBW was not alone in feeling the effects.

“Anyone who had a significant part of their business in annuities was looking for new ways to expand,” said Joe Bonanno, chief operations officer at HBW. “Many B-Ds were having the same problem.”

© 2018 Cetera® Advisor Networks LLC For use with financial professionals only.

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...it made going anyplace else feel almost impossible.”“


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After a FINRA audit in September 2016, the HBW team made the difficult decision to partner with a larger broker-dealer. “We never thought we could generate enough size or scale to compete with the larger firms,” said Hellenbrand. “Economics had deteriorated to the point where we had to make a deal.” They began taking conversations.

Because HBW’s strong values and relationships have been key differentiators for the firm, finding a cultural match was of utmost importance to the team. “We are an extremely family-oriented group,” said Hellenbrand. “Our reps really have a familial feeling, and there’s a strong culture of relationships here. It’s the best thing about our company.”

Many broker-dealers approached HBW with offers, including large firms with attractive financial packages, but HBW only took one meeting. In El Segundo, California, HBW executives and top advisors met with executives at Cetera Advisor Networks, and everyone was instantly struck by the strong cultural alignment between the two firms.

“We had a chance to meet Tom Taylor [president of Cetera Advisor Networks], who’s a lovely gentleman,” said Hellenbrand, “and Robert Moore [chief executive officer of Cetera Financial Group®], who was extremely warm and open. He was impressive in his generosity of spirit. We felt so compelled by his personality, it made going anyplace else feel almost impossible.”

“Robert is able to articulate a vision for the industry that people can get behind,” said Bonanno. “And Tom Taylor knows everything about that business. You could see how much admiration there was for all the people in the room.” In fact, advisors who accompanied HBW executives to the meeting refused to go anywhere else. “[Another firm] was very aggressive in trying to get us,” said Hellenbrand. “Their offer was significantly better, and that was totally irrelevant because our advisors flat out said, ‘If you go there, we are not going with you.’ Once they met the Cetera people, nobody else was going to compare.”

In June 2017, HBW officially joined Cetera Advisor Networks, bringing over its broker-dealer and keeping its RIA and insurance business separate for now. Along with a strong cultural fit, HBW has been pleased with the practicalities of partnership with Cetera, including platforms, services, and especially the unique regional director model, which aims to cultivate the culture of a small firm backed by the resources of a national one.

“The regional director model gives us the freedom to run our business the way we want, which is kind of like being in business for yourself but not by yourself,” said Hellenbrand. “The group dynamic—where regional directors work together to grow the company and share information to help each other grow—is a powerful dynamic when utilized correctly.” “At our first regional director meeting, there was a sense of camaraderie, and

“The regional director model gives us the freedom to run our business the way we want, which is kind of like being in business for yourself but not by yourself,”


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a little competition,” said Bonanno. “It’s always good to learn from peers. There’s a sense of comfort in that.”

Advisors have also enjoyed the technology and services available at Cetera, including the practice management platform, Pentameter®, which provides diagnostics and insight into key areas of advisors’ businesses, as well as Connect2Clients®, which helps advisors send meaningful communications to clients and prospects with a broad library of options, including market commentary, educational guidance, and holiday and lifestyle messaging.

“Working with Cetera’s technology is like getting a cell phone and it has all these features,” said Hellenbrand. “You’re never going to use all the features, but it’s nice to know they’re there.”

“There’s something for everybody if they just want to take advantage of it,” said Bonanno, noting succession planning services, business consulting, and the advanced planning department that helps advisors consult clients seeking advice beyond the scope of traditional investment management. “There’s a lot there for people who really want to build a business.”

Prior to transitioning, HBW had deprioritized recruiting as they struggled to stay afloat. “We really were going through a tough time for a while there, trying to figure out how to stay in business,” said Hellenbrand. “You have to survive before you can thrive, and we were trying to survive.” Since the transition, the team has found time and resources to begin recruiting, and they’re able to offer competitive incentive packages.

“Our dedicated recruiter has put a lot of people in front of us,” said Bonanno. “We were never in a position before to offer or match incentive packages, and

Our dedicated recruiter has put a lot of people in front of us,” said Bonanno.

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People are joining our firm again and excited to be working with us again. We’re in a position to grow now where we weren’t before.”

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that’s now available to us. It’s a massively good thing for HBW. Now in recruiting conversations, we’re able to compete with other firms.”

“I have freedom to recruit like I haven’t in a long time,” said Hellenbrand. “People are joining our firm again and excited to be working with us again. We’re in a position to grow now where we weren’t before.”

As with any major business change, there were some hurdles the team at HBW cleared during the transition. Upfront processes initially took longer than they would have liked, and adapting to the compliance requirements of a larger firm required some adjustment. Still, the team views these minor headaches as an inevitable part of the transition process. Cetera took steps to make it as seamless as possible.

“We expect things to be difficult, so if they’re only modestly so, we’re happy,” said Bonanno.

Hellenbrand elaborated further saying they are believers in Murphy’s law and that “it’ll be harder and more expensive than you expect, so plan for that.”

Overall, the team is pleased with their transition and proud of their choice of partner. “I regret that we were forced to make this decision,” said Hellenbrand. “However, I have no regrets about not having chosen another firm. Ultimately, business is personal, and I personally really like the people I get to work with at Cetera.”

800.879.8100ceteraadvisornetworks.com

Barney HellenbrandChief Executive OfficerHBW Partners

Joe BonannoChief Operations OfficerHBW Partners


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RELATIONSHIPS THAT LIFT YOU UP - ceteraadvisornetworks.com · because our advisors flat out said, ‘If you go there, we are not going with you.’ Once they met the Cetera people,