Added on May 2017 in M&A Issues
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Summary: There’s no doubt the advisory industry is consolidating, but it’s not a process of splashy acquisitions. Instead, many top firms are joining forces with like-minded smaller firms, and at times with each other, to form bigger organizations with larger market footprints. Big acquisitions with high valuations garner all the publicity, but a quiet current of mergers is powerfully transforming the industry, and such combinations may become one of the primary succession mechanisms for midsize firms.
Added on May 2017 in M&A Issues
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Summary: It is undeniable that M&A in the RIA space is heating up and not only are the number of deals increasing but the size of the average deal is also rising. What is behind this trend? Why are independent business owners merging their firms into larger enterprises? The answer is that “scale matters” and real benefits can be derived from merging a smaller independent firm into an enterprise level independent organization.
Added on April 2017 in M&A Issues
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Summary: As retirement nears for aging wirehouse advisers, many are contemplating how they can cash out. And they are bumping into a trend that is sweeping across the industry: independent practices can sell for a higher value than wirehouse practices that are transitioned to other wirehouse advisers. One senior marketing executive at a major custodian calls it an arbitrage among platforms.
Added on April 2017 in M&A Issues
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Summary: Acquirers in the wealth management industry these days aren’t looking for sleepy one-person firms but those with specific characteristics.
Added on April 2017 in M&A Issues
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Summary: Many independent advisors will be relying on the greater fool theory to strike a rich deal. Independents know that larger institutions and roll-ups routinely overpay for an advisor’s book of business. The word on the street is that buyers frequently overestimate how much advisors can grow their business.
