Building a Bridge for M&A Succession Planning


M&A activity in the wealth management space continues at a healthy pace despite headwinds that include higher valuations, increasing capital costs, ongoing market volatility and geopolitical unrest. Although the number and size of transactions are smaller than in years past, they are expected to grow going forward. And, like the industry itself, M&A is evolving in terms of its execution, intent and ultimate goals – for all parties involved. When entrepreneurial businesspeople see an opportunity, they take advantage. The aging financial advisor population presents such a lucrative opportunity for aggregators and expansion-minded RIAs to build scale within their businesses. While the question, “Is bigger always better?’ is an eternal one, for today’s strategic consolidators, bigger isn’t necessarily the goal, or at least not the only goal. Leveraging complementary resources, capturing services that fill an existing gap to better service clients, driving operational efficiencies and providing succession opportunities for NextGen professionals [...]

Building a Bridge for M&A Succession Planning2023-11-02T15:25:11-04:00

How to Bridge the Gap Between Buyers and Sellers in the Wealth Management Business


Gephyrophobia is the clinical term for a “fear of bridges.” In the wealth management space, we love bridges and rely on them (figuratively) to optimize our businesses every chance we get: bridges between clients and financial advisors, financial advisors and partner firms, and financial advisor business owners and their ultimate visions of success. These are the connections that drive achievement and satisfaction. Because connecting potential buyers and sellers is a more complex – and less frequently executed – endeavor, it isn’t usually considered in the same light. But it should be. No matter where you fall in the process – either growing your business inorganically, positioning yourself as a potential successor in a larger firm or extracting value from your business when you’ve set a timeline to begin your next chapter – making a move can be a convoluted and potentially time-consuming journey. Getting it right is all about making [...]

How to Bridge the Gap Between Buyers and Sellers in the Wealth Management Business2023-10-16T18:20:07-04:00

Succession Planning in an Age of Demographic Change, Active Aggregators and Private Equity


You are probably familiar with the adage “Failure to plan is planning to fail.” It’s as true today as when Benjamin Franklin first said it. Of course in order to have a plan, you need to have options to consider. And, right now, when it comes to succession planning in the wealth management space, choices can be limited for financial advisors who are considering a succession. For all the worry surrounding the potential impact of artificial intelligence on wealth management, demographics may prove to be the real disruptor for the industry. You have most likely seen the statistics that bear this out: the average financial advisor’s age is 58. Almost 40% of financial advisors are planning to leave the industry in the next 10 years. Upwards of 70% of advisors don’t have a succession plan. There are more advisors over age 80 than under age 30. That’s a lot of [...]

Succession Planning in an Age of Demographic Change, Active Aggregators and Private Equity2023-09-11T19:23:25-04:00