Corporate Valuation, Investment Management

February 12, 2018

What RIA Owners Need to Know About the New Tax Law

For this week’s post, we’re offering the slides and recording from our recent webinar on the tax bill’s impact on the investment management community.  On balance, we believe most RIAs are better off as a consequence of the legislation, but there are nuances to the “win.”  Specifically, the webinar covers the following observations on the recent bill:

  • U.S. equities have, overall, benefited from the tax bill
  • Higher valuations have driven ongoing revenues higher at investment management firms
  • Many RIA margins will expand as a consequence of improved economics
  • Investment management firm valuations will grow in many cases because of stronger cash flow
  • RIAs structured as tax pass-through entities (S corps, LLCs, Partnerships) may want to consider reorganizing as C corporations
So feel free to tune in or scroll through if any of these topics are pertinent to you or your firm. Download Slides

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What Today’s RIA M&A Headlines Tell Us About Valuation and Succession
What Today’s RIA M&A Headlines Tell Us About Valuation (and Succession)
RIA M&A headlines can create the impression that valuation is primarily about scale and headline multiples. In reality, today’s transaction environment reflects a more nuanced assessment of risk, growth, governance, and succession readiness.
Five Takeaways from Dimensional Fund Advisors’ Deals and Succession Conference
Five Takeaways from Dimensional Fund Advisors’ Deals and Succession Conference
Our team attended Dimensional’s Deals and Succession Conference in Charlotte this week, where industry leaders gathered to discuss the evolving M&A and succession landscape. While activity remains strong, this year’s conversations centered more on growth quality, equity structure, leadership depth, and cultural alignment than on deal volume alone.
Are IPOs in the Future for Wealth Management?
Are IPOs in the Future for Wealth Management?

Private Enthusiasm, Public Skepticism

There is a quiet irony developing in wealth management. Private equity firms continue to pay premium, sometimes nosebleed, prices for large RIA platforms. Acquisition funding continues to be available and consolidators keep consolidating. Even as private market exits have slowed and fundraising has become more difficult, sponsors remain willing to commit fresh capital to the sector. At the same time, public markets have shown only modest enthusiasm for investment management businesses.

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