Navigating Succession Planning in Financial Advisory With Dustin Mangone [Episode 329]

·30 min·3 clips

Banker Dustin Mangone reveals why financial advisors get rejected by local banks and what specialists see in real succession deals.

The episode begins with Matthew Jarvis introducing Dustin Mangone, who works at PPC Bank and specializes in lending to financial advisors. They discuss the importance of having bankers who understand advisor deals, contrasting with local banks that often reject such financing. Dustin explains that Gen 2 advisors should start succession conversations because Gen 1 advisors, unless prompted by life events, tend to stay in cruise control. Matthew shares a personal story about a Gen 2 advisor who talked about equity but never took action, highlighting the need for initiative. The conversation shifts to sellers, noting that even practices with messy financials, called 'broken toys,' can attract buyers in today's market. Dustin advises buyers to get pre-approved financing early to avoid renegotiating deals and losing seller goodwill. They discuss deal terms, including how headlines about high multiples often involve complex structures like earnouts or equity stakes. Dustin mentions that banks like his fund many transactions not reported in M&A reports, which focus on external deals. They cover lender covenants, such as personal guarantees and debt service coverage, though Dustin's program often avoids strict covenants. The episode concludes with reminders to plan exits proactively and leverage industry specialists for evolving succession strategies.

As heard by us

A grounded planning conversation on why acquisition financing should start before the right practice appears.

Acquisition financing is framed here as groundwork that should begin well before a target appears. Matthew Jarvis and Dustin Mangon keep the focus on what lenders need to see, where borrowers can run into trouble, and why an advisory practice should know its borrowing capacity…

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Why you'd press play

Eyeing an acquisition? Learn why the bank conversation belongs before you fall in love with the deal.

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