Equipment finance advisors Rinaldi Advisory Services and Verity Capital Advisors have partnered to improve dealer finance and insurance operations, while developing a strategic alliance of advisory services.
Verity Capital Advisors is a capital markets-focused investment bank that supports the middle market with $10 million to $100 million capital transactions, Chief Executive Justin Vogel told Equipment Finance News.
Rinaldi Advisory Services provides equipment finance consulting services at the executive level, President Bob Rinaldi told EFN.
For dealers, the new partnership and growing strategic alliance will help provide more in-depth consulting, furthering dealer F&I operations and the formation of captive leasing divisions.
“With as much new technology as is out there, it’s not as hard anymore [for dealers] to get into the financing side of the business,” Rinaldi said. “It is a big piece of their business.”
The partnership will also help dealers set up F&I operations, “which is very lucrative,” however most dealers “don’t have the technological nor the capital expertise or financial expertise to set up the financing,” he said.
Strategic alliance
The two advisory firms will build on an existing relationship, which saw them share clients, according to a June 4 news release from both companies.
Rinaldi Advisory Services’ existing alliance also includes:
- Executive Solutions for Leasing & Finance,
- MAI Technology Solutions; and
- Tom Ware Advisory Services.
In addition, another technology and marketing advisory firm will be added to the group in the next three months, Rinaldi said.
By bringing together advisers and service providers, the individual firms improve monetization and develop a more comprehensive solution, Verity’s Vogel said.
“A lot of service providers probably refer business back and forth to each other on a regular basis, but by creating kind of strategic alliances like this, then you’re able to monetize those referrals,” he said. “That’s important for the small service providers that need whatever revenue they can get, and then being able to go to the market with a one stop solution.”
Comprehensive advisory solutions
As dealers and lenders continue to consolidate, service providers are partnering to form their own comprehensive solutions. Examples include:
- Fleet Advantage partnering with Cox Automotive; and
- National Equipment Register partnering with KYCS Global to provide more in-depth security and theft recovery solutions.
For dealers, standing up captive organizations, improving their financing capability, and adding insurance products can help improve profitability. A goal of the strategic alliance is to provide expertise in those areas, Rinaldi said.
“You’ve got all those areas of expertise, we’ve got them all covered to get them in the game from beginning to end,” he said. “It’s very powerful to dealers who want to take a little bit more risk, but want to have greater control of their business, versus just letting their customers go finance with whomever they want.”
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