Sandra Cho, president of Pointwealth Capital Management, knows the key to ensuring her firm’s valuation remains strong is having a process that goes beyond the founder.
“You want to make sure that your firm is not completely just you,” she explains. The goal is to create a firm that can thrive without being dependent on one person. This requires establishing processes, platforms, and teams that are “transportable” so that the firm’s core functions can continue seamlessly even in the event of a sale or other transitions.
“The philosophy that you have, the investment platform structure, the models, and your trading platform is all transportable," adds Cho.
Cho also emphasizes a dual approach to growth—both organic and inorganic. Organic growth stems from referrals and building strong relationships with clients and key centers of influence (COIs), such as estate planning attorneys and CPAs.
“We not only like to get to know our clients, but also their trusted CPAs and estate planning attorneys," she says, noting that this approach fosters trust and often leads to more referrals. On the other hand, inorganic growth comes from being open to acquisition opportunities, whether that’s acquiring other firms or bringing in advisors who see value in Pointwealth’s capabilities.
A common challenge for advisors, particularly those nearing retirement, is mentoring someone with the hope they might eventually acquire the firm, only to have them leave and take the book of business.
“It really is a leap of faith when you put time, effort, and money into a person," she says, especially when considering the insecurities that older advisors might feel in handing over control. To mitigate this risk, Cho advocates diversification—not just in investments, but in people.
"I don’t just have one person that I depend on," she explains, adding that the strength of her team allows her firm to function smoothly, even if one key person leaves for any reason.
When it comes to assessing a firm’s value and increasing its marketability, Cho identifies four critical factors: average client size, client demographics, technology stacks, and unique value propositions. A firm with too many small accounts can be unattractive to potential buyers, as it requires more resources to manage.
“You might want to prune your book... maybe do a small sale of your lower half," she suggests, to make the firm more appealing. Client demographics also play a role, with younger, wealthier clients often being more attractive to buyers.
And, in terms of technology, Cho stresses the importance of having a portable CRM system and investment management process.
“Technology is a very important, crucial way that grows ever more important by the day in streamlining,” she says.
Cho also encourages firms to develop a unique value proposition. “It’s good to be diversified, but do you have an angle or a niche?” she asks. Whether it’s specializing in alternatives, private equity, or hedge fund strategies, having a distinct twist helps set a firm apart. In an increasingly competitive market, standing out is essential for long-term success.
On the topic of generational wealth management, Cho highlights the importance of truly understanding clients and their families.
"If you get to know your client, you're going to get to know what their hopes, dreams, goals, aspirations, and who they love are,” she says. This approach is not just about retaining assets when a client passes away, but about genuinely helping families with their entire financial lives. Cho stresses the value of holistic financial planning, which includes tax strategies and estate planning, as it helps strengthen relationships across generations.
Succession planning is another critical area for long-term stability, and Cho has developed a thoughtful approach to ensure her firm’s continuity.
“You need to make sure that everyone’s on the right bus,” she says. Cho advises leaders to take the time to mentor their teams, understand their aspirations, and ensure they are aligned with the firm's objectives.
“Control the experience as much as possible of your clients’ interaction with the team,” she tells IN.
Leadership is critical in creating a strong, lasting firm culture, but Cho stresses that it’s not just about the partners or senior leaders.
"While the main person or partners will be the lead people in creating that culture, you want to make sure every single person on your team has that place of leadership,” she says.
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