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.
Added on March 2017 in M&A Issues
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Summary: A RIA’s size, the demographics of its clientele as well as its advisor force, and the owner’s ability to negotiate are the three main factors buyers use to value an advice practice, says the Wall Street Journal.
Added on March 2017 in M&A Issues
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Summary: Too many wirehouse brokers considering going independent are led to believe that once they leave their bank-owned brokerage they will no longer have access to sophisticated lending tools to offer their clients, such as competitively priced margin loans or home loans.
