Page 6 - David Devoe News Today

The number of large private equity firms gobbling up smaller fund advising companies is three times more than deals made five years ago.

During a year when ever-larger RIAs are being acquired, Hightower says it reached a deal with 6 Meridian, a $1.8 billion AUM RIA in Wichita, Kan.

The RIA M&A market may be hot, but advisors should proceed with caution, said speakers at the MarketCounsel Summit this week.  

The prospect of higher taxes pushed M&A activity, while the pandemic created a focus on succession planning.

“If you can acquire a firm and increase the profitability and make them grow faster, you can pay more," said David DeVoe.

Over half of RIA deals done in the third quarter involved selling firms with $1 billion or more in assets, according to DeVoe & Company.

The Covenant deal, Captrust’s seventh so far this year, continues its strategy of combining retirement plan services with wealth planning.

The Tech Investment Squeeze According to Financial Planning’s 2021 Tech Survey, large firms are ramping up spending while smaller firms are keeping budgets modest. Are they starting to fall behind?

14 Min Read John Eubanks, a director and CFP at Park Sutton Advisors, an investment bank in New York that specializes in financial services firms, says that private equity shops buying minority stakes in advisory firms “is a recurring theme right now.” The investments are attractive, he says, because of the growing profit margins at RIAs, an upswing that has led to “a premium in valuations being paid now.” Independent advisor practices have been in a flurry of mergers and acquisitions f...

In this episode, David Armstrong, editor-in-chief of WealthManagement.com, speaks to David DeVoe, founder and CEO of DeVoe & Company, to discuss what is changing in the industry for investment advisory firms, what firms are driving the wave of deals and the biggest risks to RIAs.  DeVoe & Company founder and CEO David DeVoe David shares:  What “META” RIAs are, and how they will change the industry; The percentage improvement in a firm’s valuation that comes from a mere 1% boost in gr...