The Wire

March 12, 2020

Behind Beacon Pointe’s big PE deal

Offering potential RIA sellers equity-only deals just wasn’t enough in today’s cut throat M&A market.

Beacon Pointe Wealth Advisors made only five all-equity deals from 2016 through 2019, while deep-pocketed rivals like Focus Financial Advisors, Mercer Advisors and Wealth Enhancement Group, armed with capital from private equity firms and the public markets, combined for 35 deals last year alone.

March 11, 2020

RIA dealmaking slips in February

The pace of RIA dealmaking slipped in February, according to a new report from Fidelity.

The RIA custodian found that RIAs completed seven transactions totaling $6.2bn in assets in the month, down from 13 transactions totaling $18.9bn in AUM in January.

March 6, 2020

What Pershing’s Pricing Shakeup Means for RIAs

Five months after trading commissions for RIA investor clients fell to the wayside at Charles Schwab, TD Ameritrade and later Fidelity, Pershing jumped into the act with a zero-commission model tied to a low-yield cash sweep program and the option for advisor clients to pay at least $25 a month with fees tiered to assets.

What does the news mean for advisors — grappling with Schwab’s impending purchase of TD Ameritrade and other disruptive forces, like newbie Altruist’s entry into the custodial space this week? 

March 4, 2020

Surviving the Three Psychological Stages of an RIA Sale

Steven W. Kaye shares a story about one of his most difficult clients. It was the 1970s and this man owned 13 dry cleaning stores in what were then three dangerous cities: Jersey City, Hoboken, and Bayonne. He wore a gun in his store every day. He had no partner or manager. He died at 57 and left his widow with four kids, no business continuation plan or education funds.

February 28, 2020

What's the Real Deal With M&As?

A new report produced by Advisor Growth Strategies and sponsored by BlackRock examines the driving forces of price and terms in advisory firm mergers and acquisitions. The core of the analysis provides a window into successful deals, including which buyers are prevailing and which sellers are optimizing transactions.

Entitled “The RIA Deal Room: New demands and realities in M&A,” the study busts some common myths that circulate in our industry. For example, the so-called multiple is not the same regardless of firm size and client characteristics. Nor are all deals cash deals.

February 21, 2020

Why Succession Planning Matters

Year after year, growth is the first priority for advisory firms. The key to unlocking growth may well be in developing a succession plan that focuses on creating the capacity and operating leverage to support additional clients, while keeping an eye on healthy profit margins to allow for reinvestment in the business along the way.

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