February 21, 2024



Financial advisors considering whether to buy or sell their firms will be in a very different place than they were a year or two ago, deal experts say.

average client equity per transaction and Number of billion dollar companies With private equity-backed acquirers such as Carson Group and OneDigital Investment Advisor Announce major deals.

During a panel discussion in New York last week by Marc Cabezas, M&A Executive Director Hightower in Chicago; Raj Bhattacharya, CEO of San Francisco-based RIA Robertson Stephens; and Brandon Kawal, Principal M&A Advisory Firm Advisor Growth Strategiesshared the following 10 tips to help advisors think about their Highly competitive market promotes industry consolidation.

Most registered investment advisors for sale plan to retire sometime in the next decade, not three years or less, Kaval said.The current situation is also different from 2021 and “early 22” when the president changes Government sparks expectations for higher taxes That could make future deals less attractive,” he said.

“It’s taking longer to close deals now,” Kaval said. “We’re seeing people have longer runways, longer time horizons. They’re going to take the time to choose the partner that’s right for them. I think buyers are also going to say, ‘Hey, that’s great, you know, we’re going to Do it. Let’s take a moment to evaluate.” It can be frustrating at times. “

Carson Group, headquartered in Omaha, Nebraska Closing largest deal to date Last week it acquired Northwest Capital Management, a Portland, Oregon-based wealth management and retirement planning firm with 13 advisors and other employees managing $5 billion in client assets. Advisors Brent Petty and Fred Payne remain in charge of the Carson-owned team, which has $28.2 billion in client assets, more than 140 partner officers, and 46,000 households served. The parties did not disclose the terms of the deal.

“Our partnership with Carson will allow us to significantly expand our resources, gaining additional support staff for client service, financial planning, investment research, portfolio analysis, trading and investment monitoring,” Petty said in a statement. “This partnership will also provide new resources for our program sponsor partners and their participants.”

Headquartered in Overland Park, Kansas Purchased OneDigital Armonk, New York-based StoneStreet Equity, a wealth and retirement planning advisory firm with $3.8 billion in advisory assets, said on June 22. Principles Spencer Goldstein and Heidi Sidley will also continue to lead their team. The parties also did not disclose the terms of the deal.stone street is already Using OneDigital’s RIA Arm before being incorporated into the new parent company.

“We are excited to join OneDigital, leveraging the power of combining our expertise in pension risk transfer and defined benefit plans with OneDigital’s expertise and national reach in the retirement and wealth industries,” said Sidley and Goldstein. To the mutual benefit of all our customers,” in a statement.

To see their 10 tips for wealth management for buyers and sellers, scroll down the card presentation. See why private equity capital keeps pouring into the industry, Click here.And, to see five charts showing the pros and cons of RIA growth, follow this link.