Corporate Valuation, Investment Management

September 5, 2017

Recent Trends in Asset Management

This week, we’re sharing some recent media on trends in asset management and the outlook for M&A activity.  Most industry observers foresee an uptick in asset manager dealmaking as rising costs, asset outflows, and a heightened interest from consolidators incent many firms to pull the trigger on a sale or business combination with another RIA.    

Global Asset Management 2017 – The Innovator’s Advantage

by The Boston Consulting Group BCG provides a detailed profile of the RIA industry, M&A trends, growth opportunities in a passive environment, and optimizing investment management for the digital age.

Latest Mercer Move Highlights Hot M&A Demand for Smaller Firms

by Charles Paikert Though no relation to our firm, Mercer Advisors recently announced its fourth asset manager deal of the year, underscoring the desirability of smaller RIAs in a seller’s market.

Skill through Scale?  The Role of M&A in a Consolidating Industry – Investment Management M&A Outlook

by Casey Quirk, a practice of Deloitte Consulting LLP Casey Quirk sees brisk M&A activity continuing in 2017 and beyond as a result of deteriorating economics, distributor consolidation, the need for new capabilities, and a shifting value chain.

Asset Manager Deal Wave Has Just Begun

by Aaron Black This Wall Street Journal piece predicts continued consolidation in the RIA space as struggling active managers combine to stem the tide of asset outflows.

Minority Stake Sales Prop Up Investment Management Dealmaking Activity

by Joe Mantone This recent piece by S&P Global Market Intelligence examines the heightened level of minority investments in asset managers in the context of slowing M&A volume for the sector.

Renewed Appetite – Alts Manager M&A Heats Up

by KPMG With the continued “bar-belling” of investors’ portfolios and strong demand for alternative strategies in the current low-growth, low-yield environment, KPMG sees renewed appetite for dealmaking involving hedge funds and private equity firms. As always, we are available to continue any of the above discussion further. Don't hesitate to call us.

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Making Money in Money Management
Making Money in Money Management

What First Eagle and Wealth Enhancement Can Tell Us About Building Value

Asset managers and wealth managers can reach similar valuations through very different economic models, with relationships, product scalability, growth, and operating leverage shaping the path to value. First Eagle and Wealth Enhancement Group illustrate why sustainable AUM growth and durable cash flow matter more than scale alone.
RIA Valuation Insights Blog Investment Management
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The Valuation Provision in Your RIA’s Buy Sell Agreement Is Probably Stale
The Valuation Provision in Your RIA’s Buy Sell Agreement Is Probably Stale
RIA buy sell agreements can become dangerously outdated as firm values and market conditions change. Reviewing valuation provisions before a triggering event can help identify stale prices, flawed formulas, and gaps in appraisal procedures.
WEBINAR: Buy-Sell Agreements: Designing Valuation Processes
UPCOMING WEBINAR: Buy-Sell Agreements: Designing Valuation Processes
The program will examine the purpose of buy-sell agreements, key valuation provisions, formula-based and appraisal-based pricing methods, and alternative appraiser structures. It will also address practical considerations for implementing and updating the valuation process, including timing, costs, funding terms, and appraiser continuity.

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