Added on May 2014 in M&A Issues
1 visitor like this article | Viewed 4888 times | 0 comment
Summary: Online advisory services are beginning to have an impact on the valuations of financial advisory firms.The low prices and competitive threat of so-called robo advisors were cited as factors that traditional advisors must take into account when valuing their firms for mergers and acquisitions, say experts at Gladstone Associates' annual advisor conference in Philadelphia.
Added on May 2014 in M&A Issues
1 visitor like this article | Viewed 5373 times | 0 comment
Summary: Should RIA founders sell to an outside buyer or to junior partners already in the firm? The internal vs. external sale debate proved to be one of the liveliest at the recent Deals and Deal Makers Summit in New York.
Added on May 2014 in M&A Issues
1 visitor like this article | Viewed 5215 times | 0 comment
Summary: Almost every advisor must come up with a valuation for their firm at some time or another—whether it’s to sell or merge with another firm. And for some, it’s more of an art than a science. How do you put a price on your firm? The five most important factors that go into a valuation include financial management, growth, scale, business model, and clients, said Dan Seivert, CEO of ECHELON Partners, during a Laserfiche workshop in New York.
Added on April 2014 in M&A Issues
0 visitor like this article | Viewed 4701 times | 0 comment
Summary: What is the secret to success for advisory firms that decide to take the plunge? After all, a merger resembles a marriage of sorts, with many of the same challenges and few of the same benefits. Similar to partners in an ill-conceived marriage, many advisors expend more energy on the wedding than on the long-term relationship.
Added on April 2014 in M&A Issues
1 visitor like this article | Viewed 4929 times | 0 comment
Summary: Not too long ago, a financial advisor called me to say he heard that a colleague had just sold his independent practice for a pretty penny: three times revenue. Could I get him the same deal? Matt Brinker, senior VP of United Capital, practically rolls his eyes when he hears a story like this: “Every time I am on a panel discussing M&A in wealth management, the first question from the audience is, ‘What are the current multiples?’" Multiples are nice, but they aren’t everything. And they may, in fact, be deceptive. “Price matters, but terms trump price,” says Brinker.
