The Real Value of Due Diligence: How a Former Merrill Advisor Used Logic and Emotion to Assess His Firm and Business Life

The Diamond Podcast for Financial Advisors

With Nate Harris, Founder, Covenant Capital

Overview

Nate Harris recognized that the firm he first built his business at no longer aligned with what he deemed as his North Star. After extensive soul searching and due diligence, he decided to leave his team at Merrill and opted for the independent broker dealer model, which he felt would allow him to achieve all he desired and then some.

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NOTE: The views and opinions expressed by the guests on this podcast are their own and do not necessarily reflect the views and opinions of Diamond Consultants. Neither Diamond Consultants nor the guests on this podcast are compensated in any way for their participation.

About this episode…

For many advisors, finding their “North Star” is a journey to identify what’s most important to their businesses and their lives.

That realization often serves as the foundation for a renewed commitment to their firm or as a motivation for change.

Nathan Harris started his career at Merrill in 2006 and joined a team of 8. His experience at the firm was not unlike many other advisors we speak with: He worked with a great team and built a stellar business, yet he started to recognize the firm’s “trend of changes.”

So Nate dove headfirst into due diligence to explore the options available to him. He spoke to “at least a hundred individuals,” as he put it, and filled an entire notebook with information that he and his now partner Jeff reviewed throughout the exercise.

They decided that their North Star was founded on the ethos that a change had to be better not only for their clients but also for their team and themselves.

And one thing came to light early in the process: Each actually could be better.

After exploring a variety of firms and models, they made the leap to independence and launched Covenant Capital with Raymond James independent broker dealer model in 2021.

In this episode, Nate shares a compelling narrative with Jason Diamond, including:

• The trend line of evolution at Merrill—and how that impacted the decision to make the leap.
• RIA vs. IBD—and what drove the decision to choose the independent broker dealer model.
• Breaking up a team—and why some chose to stay at Merrill instead of transitioning to Raymond James.
• The process of due diligence—and why he sees it as a valuable exercise any advisor should embark on periodically.
• The logic and emotion of decision-making—and how to account for both.
• Plus, Nate offers really valuable advice on how to assess your business life—and keep your north star at the helm.

Want to learn more about where, why, and how advisors like you are moving? Click to contact us or call 908-879-1002.

Related Resources

Why you need to define your “True North”
Developing your own guiding principle will ensure you stay focused on the big picture, not individual items in a vacuum.

Should I Stay or Should I Go? An Advisor’s Guide to Thinking Through Their Biggest Decision
Jason Diamond turns the tables on Mindy who offers a first-hand glimpse into her book, Should I Stay or Should I Go?, created specifically for financial advisors who are looking to optimize their businesses or thinking through the biggest decision of their lives.

Going Independent with an RIA vs. IBD: A Comparison Fact Sheet
When it comes to freedom and control, there are key differences amongst the independent broker dealer (IBD) and registered investment advisor (RIA) spaces that every advisor should be aware of.

Nathan S Harris, CFP^®, CPWA^®, CRPC^®, C(k)P^®,CPFA^®, CPWA^®, CRPC^TM
Founding Partner

Nathan started his career at Merrill Lynch in 2006 prior to founding Covenant Capital in 2021. He was named to the Forbes Best-In-State Wealth Advisors list in 2018, 2019, 2020, 2021. Nathan holds multiple designations, including the Chartered Retirement Planning Counselor℠ designation and the Certified Financial Planner^™ certification awarded by the Certified Financial Planner Board of Standards, Inc.

Nathan is a member of the Tivoli Society for the Weinberg Center of the Arts and is a past president of the Southern Frederick County Rotary Club. He graduated magna cum laude from the Wharton School at the University of Pennsylvania and is a former Navy lieutenant on board the USS Ronald Reagan, where he worked on nuclear reactors.

Nathan and his wife, Kate, pursue charitable causes that are important to their family and to our client families through a donor advised fund, The Nate & Kate Harris Foundation. They live with their two children, Max and Ella Jane, and their miniature Schnauzer, Harry Potter.

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