Remote meetings removed valuable face-to-face contact, but they also let Mercer include more specialists and answer follow-up questions faster. A three-hour session could bring eight functional experts into only the portions relevant to them, avoiding cross-country scheduling and travel.

Trust-intensive acquisition conversations became harder without physical meetings.
Virtual sessions supported a quicker meeting cadence.
More specialists from both firms could participate.
Experts could join immediately when an unexpected question arose.

“It's actually enabled us to have a much quicker cadence and to have more people from the firms are requiring be engaged in the process”
Dave Welling · 21:57

“I think we found that that it actually can be really enriching”
Dave Welling · 22:54

#remote work#zoom#acquisitions#collaboration

Hot Take· 3

Hot Take28:13

Private Equity Provides Accountability, Not Just Capital

Welling reframes private-equity ownership as a governance mechanism that holds management responsible for realizing a company's potential. A board that can replace an underperforming CEO can benefit clients and employees when accountability is tied to delivering the firm's promises.

Deal structures commonly combine upfront cash with retention-based earnouts.
Mercer also allows employees to invest in the company.
Private equity creates board-level accountability for the CEO.
Welling views responsibility and governance as important as the capital itself.

“I think people miss that they just talk about it as as capital and actually think about it more as accountability and and responsibility”
Dave Welling · 29:58

“It is made the CEO C in the business accountable to become what we're capable of becoming.”
Dave Welling · 29:32

#private equity#governance#accountability#deal structure

Hot Take55:51

Why Other Fiduciary Advisors Are Not Necessarily Competitors

Because wealth management remains highly fragmented, Welling sees major conflicted institutions as more meaningful contrasts than fellow independent fiduciaries. Sharing practices among fiduciary firms can grow the category, improve consumer outcomes, and help smaller firms collectively influence the industry.

Even the largest financial-services firms hold limited market share.
Independent fiduciary firms can benefit from growing their entire category.
Welling shares initiatives and lessons through industry groups.
A prospect choosing another good fiduciary firm can still be a positive consumer outcome.
Collegiality distinguishes advisory services from concentrated technology markets.

“there's more to be gained from us working together UM than from us seeing or perceiving each other as competitors.”
Dave Welling · 57:11

“all of us are smarter than any any one of us”
Dave Welling · 58:56

#fiduciary#competition#collaboration#ria

Hot Take59:27

A Short-Term Bearish, Long-Term Bullish View of Schwab-TD

Welling expects the Schwab-TD integration to distract attention toward operational issues in the short term. Over time, however, combining capabilities should create a healthier custodian whose strong advisor and retail businesses can support further investment in advisory firms.

Integrating two large custodians will take time.
Operational work may divert attention in the short term.
A financially healthy custodian benefits advisory firms.
Retail strength can support investment in advisor services.
Welling expects enough custodial choice to remain.

“short term bearish, long term bullish on this one.”
Dave Welling · 59:27

“as an advisor, when you work with a custodian, you really need that custodian to be healthy.”
Dave Welling · 1:00:29

#schwab#td ameritrade#custody#consolidation

Explainer· 2

Explainer24:32

Why Rising Advisory-Firm Prices May Reflect Real Value

Welling argues that higher valuations are not explained only by abundant private-equity capital. Investors increasingly recognize fiduciary advisory firms as durable service businesses with strong retention, recurring cash flow, and organic growth created by satisfied clients.

Independent fiduciary advisors are increasingly understood as a distinct category.
Strong client work produces retention and referrals.
Recurring cash flow becomes more legible after sustained performance.
Buyer competition raises prices, but underlying business quality also matters.

“very high retention, very high recurring cash flow.”
Dave Welling · 25:29

“valuations are going up, but that's because there's value and people are starting to recognize it.”
Dave Welling · 27:37

#valuations#ria#private equity#cash flow

Explainer46:50

Making Responsible Investing Customizable and Affordable

Mercer's commitment to responsible-investment principles led it to offer customized SRI and ESG capabilities without additional investor expense. Welling sees this as allowing ordinary clients to align capital with personal values without accepting a needlessly expensive or inefficient portfolio.

Mercer became a signatory to the UN Principles for Responsible Investing.
Separate-account capabilities allow customized responsible portfolios.
The service is offered without an additional investor expense.
Consumer demand was becoming visible in different regions.
Accessibility matters alongside ethical intent.

“we want our money to act in the same way.”
Dave Welling · 48:40

“helping democratize that access and have people be able to do the right thing with their money”
Dave Welling · 48:50

#esg#sri#investing#access

Story· 3

Story04:34

Why Welling Left Schwab for a 20-Person Technology Company

Welling left the security of Charles Schwab after the financial crisis to join Black Diamond, then a small Florida technology company. He believed technology would move from operational support into the client experience by giving advisors scale and consumers timely, transparent portfolio information.

Black Diamond had about 20 employees and less than $2 million in annual revenue when Welling joined.
Welling expected technology to move from the back office to the front office.
Daily reporting replaced portfolio information that could be months old.
The risky move became what Welling called his best career decision.

“technology was going to move from the back office to the front office”
Dave Welling · 05:48

“probably the best career decision I ever made.”
Dave Welling · 06:35

#fintech#career#transparency#entrepreneurship

Story1:01:08

Why Welling Does Not Regret Passing on Early Amazon

Welling once chose between joining Schwab and a small Seattle company that became Amazon. He rejects hindsight regret because the alternative outcome is unknowable and Schwab gave him purpose, proximity to Charles Schwab, and a formative role in an entrepreneurial industry.

Amazon might have produced valuable stock options, but success was not guaranteed.
The Schwab role offered unusual access to senior leadership.
Welling was seeking an industry and company with purpose.
He believes people should engage with their current path rather than relitigate every fork.

“you just youve got to enjoy the road you're on and enjoy the journey and enjoy the opportunities that you have right now”
Dave Welling · 1:03:25

“I certainly don't.”
Dave Welling · 1:03:32

#career choices#amazon#schwab#regret

Story1:03:51

The Quiet Question Charles Schwab Used to End Debates

Welling recalls Charles Schwab listening silently through lengthy internal debates before reducing the decision to what was right for the client. That client-first orientation shaped Welling's view that durable businesses depend on both satisfied clients and employees.

Charles Schwab was reserved and listened closely.
He used client interest to resolve complicated debates.
Some client-first decisions required financial courage.
Welling carried that decision standard into his own leadership.

“look, there's only one choice here, what what's right for the client?”
Dave Welling · 1:04:45

“it's hard to build a great business if you're not doing the right thing for clients”
Dave Welling · 1:05:03

#client service#decision making#leadership#schwab

Takeaway· 4

Takeaway12:05

The First Move an Outsider CEO Made to Earn Trust

Rather than remaining at headquarters to develop plans, Welling visited every Mercer office and listened to employees. The tour taught him what was working, exposed operational problems, and allowed dispersed teams to understand the new leader personally.

An outsider CEO first needed the team to know him.
Welling visited every office instead of beginning with headquarters planning.
He asked employees what worked, what failed, and what should happen next.
The listening tour connected the leader and culture in both directions.

“the very first thing that I did was certainly not sitting headquarters and try and do planning. I got on a plane.”
Dave Welling · 12:13

“The best thing I ever did because it both connected me to the culture and team and inversely helped the team understand who I was…”
Dave Welling · 12:33

#leadership#listening#trust#onboarding

Takeaway42:55

Why Listening Must Precede Diversity Action

After George Floyd's death, Welling found that employees wanted action but first needed space for understanding. Mercer held numerous internal forums, then connected action with allies and accountability rather than relying on a leadership statement alone.

The organization needed to speak but, more importantly, listen.
Internal forums helped employees discuss inequality and diversity.
Allies can coordinate action across companies and professions.
Leaders must hold peers accountable, not only manage their own conduct.
Progress must continue despite an unacceptable starting point.

“we've a needed to say something, being more importantly needed to listen.”
Dave Welling · 44:08

“you need to do more than just do the right thing yourself.”
Dave Welling · 45:52

#diversity#listening#allies#accountability

Takeaway1:10:10

Career Advice: Choose Growth Before the Perfect Job Title

Welling advises graduates to prioritize a growing, interesting industry and a company making meaningful progress over optimizing their first title. Growth creates unplanned opportunities, while financial advice increasingly rewards empathy and client care alongside technical competence.

Choose an industry that is growing and genuinely interesting.
Join a company that is making a meaningful dent.
Worry less about the exact entry-level role.
Growing enterprises create opportunities across functions and levels.
Human care is becoming more differentiating as machines handle more calculation.

“Worry a little bit less about the position, right, the specific role right.”
Dave Welling · 1:10:33

“this is really ultimately about caring for clients and helping people”
Dave Welling · 1:11:24

#careers#growth#financial advice#graduates

Takeaway1:12:01

The Best First Investment Move Is Simply to Start

Welling's advice to his younger self is to open an account and make one understandable investment rather than waiting to master every choice. Starting early and remaining patient matter more than navigating all the complexity the industry presents upfront.

Investment complexity can intimidate beginners into inaction.
A first simple investment creates practical experience.
Starting early extends the power of compounding.
Patience is central to a long-term strategy.
The industry should help clients make basic consequential decisions more easily.

“let's just open the account and let's just make this one investment and we'll see how it goes.”
Dave Welling · 1:12:40

“there's no substitute for best investment strategy to start early and have patients right.”
Dave Welling · 1:12:52

#investing#beginners#simplicity#patience

Frameworks in this episode

Culture-Strategy-Financials Acquisition Screen

Internal-External Diversity Flywheel

Point-Advisor Integrated Service Model

Principles-First Distributed Culture

Insights & moments

⚡Myth Buster· 1

How Zoom Made Parts of Acquisition Courtship Better

◆Hot Take· 3