Does Size Matter?

Boone, Norman M.
March 2000
Journal of Financial Planning;Mar2000, Vol. 13 Issue 3, p28
Academic Journal
This article discusses the consolidation options for companies that seek synergies and economies of scale. One option is to use the Merrill Lynch or American Express model. The model stresses the importance of having a lot of representatives sitting in different offices, and having access to centralized services and expertise. The model allows for national or regional advertising and marketing efforts and encourages the development of a recognizable brand. Another solution for many planners is to band together, perhaps as few as 3 or 4, or as many as 10 to 15. Doing so would cut costs by allowing them to eliminate the duplication of equipment, software, waiting areas, operations activities, accounting and receptionist activities. In addition, planners would be able to develop higher levels of specialty, and thus have the opportunity to service higher-level clients.


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