The Wire

April 1, 2019

The great compensation shift: From solo stars to team players

Anne Marie Stonich knew she had to make a change.

After five years at Brighton Jones, a large Seattle RIA, Stonich and two colleagues at the firm wanted to run a business their own way.

“We felt we could play an even bigger role in our clients’ lives, and have more control of our own,” she says.

March 19, 2019

Crash test: How RIAs can survive the next recession

1. Get Out While You Still Can

Valuations for RIAs are approaching their pre-financial crisis highs, according to David DeVoe, managing parter at RIA M&A consultancy DeVoe & Company. RIAs looking to sell can command between 4x and 6x cash flow for an $100 million firm, 5.5x to 7x for a $500 million firm, and as much as 9.5x cash flow for a $1 billion firm, DeVoe said.

March 15, 2019

What advisors should know about the new valuation standard

What’s an RIA really worth?

Getting an answer, it seems, depends on what yardstick you use to measure it. Discounted cash flow has recently become the new de facto standard. But untangling how that model really operates, and what buyers and sellers should ultimately be keeping an eye on in the sales process, can be challenging.

February 11, 2019

Even after deal, will Chalice Financial have 'right service mix'?

Chalice Financial Network is upping the stakes in the competitive platform provider market.

Chalice has acquired Succession Link, an online matching service for RIAs looking to buy or sell their firms, and has forged a strategic alliance with Oak Street Funding, a bank subsidiary that provides commercial financing for financial service businesses.

November 29, 2018

Why M&A’s ‘M&M’ sluggers are hitting home runs

Baseball greats Mickey Mantle and Roger Maris were known as the “M&M Boys” when they were hitting home runs for the New York Yankees in the 1960s.

A half-century later, the RIA business has their own pair of “M&M” sluggers —Mariner Wealth Advisors and Mercer Advisors. In November alone, the two firms demonstrated their considerable M&A prowess, snapping up four advisory firms with over $3 billion in combined assets under management.

October 31, 2018

Why building a multibillion dollar firm is not for the faint of heart

If you want to become a multibillion dollar advisory firm, be prepared to make some hard decisions.

Principals committed to growing their RIA into an enterprise firm need to recognize the difference between management and leadership, said Brent Brodeski, CEO of Savant Capital Management.

“Management is telling people what to do,” Brodeski told advisors at a session titled “The Road to a Multi-billion Dollar Firm: Pushing Past Challenges and Setbacks” at Charles Schwab’s annual IMPACT conference. “Leadership is having a vision and attracting people to it.”

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