M&A Issues

Don't ask advisers what their firms are worth, they don't know

Added on February 2012 in M&A Issues

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Summary: Three-quarters of advisors have never conducted a formal evaluation to nail down the value of their firm according to a preliminary finding from IN Adviser Solutions' first-ever study of Succession Planning in the financial advisory business.

Knowing the actual value of a firm is a critical element of a succession plan. And incidentally, just one-in-three advisory firms actually have a succession plan in place, according to the IN Adviser Solutions group's 2010 Financial Performance of Advisor Firms Study.

RIA deals fizzle in the fourth quarter but big-paying banks are getting back into the game

Added on January 2012 in M&A Issues

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Summary: 4^thQuarter 2011 M&A deals were  down in volume. Schwab Advisor Services reports that there were only 57 M&A deals involving RIAs for the full year 2011 representing approximately $44 billion in total assets. There were 70 deals in 2010 representing $63 billion in AUM. It’s worth noting, however, that the 57 deals were still the second-most ever recorded by Schwab since it started counting them in 2004. The size of the average deal in 2011 was $798 million, the lowest average since 2005 and down from $895 million in 2010.