Corporate Valuation, Investment Management

October 2, 2017

Recent Trends in Asset Management

This week, we’re sharing some recent media on trends in asset management, including the breakaway broker phenomenon, M&A activity, and the ongoing shift towards passive products.  Most industry observers foresee a continued flight from traditional wirehouses, an uptick in M&A activity spurred by increasing competitive pressures, and further fee pressure from passive products as we move towards a new equilibrium. 

Switching From Wirehouse to RIA – AUM And Revenue Requirements To Break Away

By Michael Kitces We wrote last month about advisors shifting from traditional wirehouses to independent RIAs, and this post by industry consultant Michael Kitces offers a deep dive into the economics of the switch from an advisor’s perspective.

RIAs Poised to Land Wirehouse Recruits

By Dan Jamieson Going independent doesn’t have to mean starting from scratch: wirehouse advisors are increasingly a recruiting channel for existing independent RIAs, according to this piece by industry observer Dan Jamieson.

Advisor Platform Comparison: Wirehouse vs RIA Aggregator vs Independent RIA

By Aaron HattenbachIn this guest post which appeared on Michael Kitces’ blog, industry insider Aaron Hattenbach offers perspective gleaned from his own experience on the relative merits of wirehouses, RIA aggregators, and fully independent RIAs, each of which he has worked at.

UBS is ‘Constantly Approached’ About Asset-Management Unit

By Patrick WintersThis article from Bloomberg underscores the potential for a new wave of deals in the asset management space: UBS Chief Financial Officer Kirt Gardner indicates that UBS is “constantly approached” regarding its asset management unit.

Path to Growth: Why RIA firms leverage M&A as a growth strategy

By Christopher V. Gunderson Increasing operational and compliance costs combined with downward fee pressure may be forcing consolidation in an industry where historically M&A activity has been sparse: according to a survey by InvestmentNews, 44% of RIAs plan to pursue M&A deals over the next five years.

Why Critics of Passive Investing Are Wrong

By: Kent Smetters Somewhere there’s equilibrium between active and passive asset management, and wherever that equilibrium may be, we are not there yet according to this WSJ piece by University of Pennsylvania Wharton School Professor Kent Smetters.

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When RIA Owners Disagree on Value
When RIA Owners Disagree on Value

Choosing the Appraiser, the Process, and the Rules of Engagement

Valuation disputes among RIA owners require more than a defensible appraisal—they also require a clear process for selecting a qualified, independent appraiser and establishing fair rules of engagement. Thoughtful dispute-resolution provisions can help parties reach a credible conclusion even when perspectives on value differ.
RIA Valuation Insights Blog Investment Management
Read Now about When RIA Owners Disagree on Value
Mercer Capital to Sponsor the Association of Trust Organizations 2026 Annual Meeting
Mercer Capital to Sponsor the Association of Trust Organizations 2026 Annual Meeting
Mercer Capital is pleased to sponsor the Association of Trust Organizations’ 2026 Annual Meeting, taking place September 21-23, 2026, at the Grand Hyatt Deer Valley in Park City, Utah. Matt Crow, Brooks Hamner, and Zach Milam will attend on behalf of the firm.The 2026 Annual Meeting is a 1.5-day conference designed exclusively for the trust industry and will feature more than 13 hours of roundtables, panels, and networking. One of the featured sessions is Tuesday afternoon’s Session VI, “What Makes a Trust Company Worth More? Building Value Before the Deal,” which will be moderated by Matt Crow. The panel will explore the factors that drive valuation, how buyers and sellers evaluate opportunities, and what firms can do today to maximize enterprise value.Matt Crow, CFA, ASA, is the CEO of Mercer Capital and leads the firm’s Investment Management Industry team. He works with RIAs, independent trust companies, broker-dealers, and investment consulting firms on valuation matters related to corporate planning and reorganization, transactions, employee stock ownership plans, tax issues, and intangible asset valuations. Matt is also a frequent contributor to Mercer Capital’s RIA Valuation Insights blog.Brooks Hamner, CFA, ASA, is a Senior Vice President and a senior member of Mercer Capital’s Investment Management Industry team. He provides valuation services to RIAs, independent trust companies, asset managers, wealth management firms, broker-dealers, and investment consultants, and he also advises clients buying or selling their business.Zach Milam, CFA, is a Vice President and a senior member of Mercer Capital’s Investment Management Industry team. He has experience in corporate planning and reorganizations, financial reporting, fairness opinions, litigation support, employee stock ownership plans, and estate and gift tax planning and compliance matters.Mercer Capital regularly works with RIAs, independent trust companies, broker-dealers, and other investment management clients on valuation and advisory matters, and the firm looks forward to connecting with attendees in Park City. Visit the conference website to learn more about this year’s Annual Meeting: https://trustorgs.com/annual-meeting/.
The Margin RIA Buyers Actually Underwrite
The Margin RIA Buyers Actually Underwrite

Why the Post-Closing Cost Structure Matters More Than the Historical Margin

RIA buyers often focus less on a seller’s historical margin than on the earnings the business can generate after closing under the buyer’s operating model. Differences in integration strategy, cost structure, and platform capabilities can lead buyers to underwrite materially different margins and values.
RIA Valuation Insights Blog Investment Management
Read Now about The Margin RIA Buyers Actually Underwrite

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