Wealth Management M&A Transaction ... - Fidelity Investments

Fidelity Wealth Management M&A Transaction Report

April 2020

M&A activity among Registered Investment Advisors (RIAs) and Independent Broker-Dealers (IBDs) for the month of April 2020

Wealth Management M&A Transactions

April 2020

M&A activity in April continued at a slowed pace in both transaction frequency and size. There were three RIA transactions representing $1.4B client assets and one BD acquisition by LPL Financial representing $1.5B. Together, March and April had the lowest RIA AUM total ($2.6B) for two consecutive months since Fidelity began tracking in 2016. Year-to-date, the number of RIA deals has declined 38% and AUM is down 33% compared to the same period in 2019. On the IBD side, client assets are down from $391.0B and six deals to $1.5B and one deal.

Serial buyers and bankers indicate that M&A interest remains high with both buyers and sellers and that discussions and due diligence continue forward. However, cultural fit and face-to-face interaction are critical to deal-making, which means negotiations in a time of virtual engagement could lead to limited activity in the second quarter.

Additionally, there has been a prevalence of strategic minority investments. Those transactions notably include Emigrant Partner's investments in Stratos Wealth Partners and Parallel Advisors, as well as Mariner Wealth Advisor's stake in Dynasty Financial Partners to form a new entity, Mariner Platform Solutions*.

Former Firm 1 Houston Asset Management 2 Coe Financial Services 3 Willingdon Wealth Management 4 Lucia Securities

Former Firm Seller Type

RIA

Allworth Financial

New Firm

RIA

Creative Planning

RIA

Exencial Wealth Advisors

BD

LPL Financial

Approx. Transaction Date

04/01/2020

04/09/2020

04/30/2020

04/28/2020

Approx. AUM/A ($M)

450

126

800

1,500

Location Houston, TX Wichita, KS Huntersville, NC San Diego, CA

Acquirer Model1 Branded Acquirer Branded Acquirer Large RIA Acquirer IBD

*While these transactions do not qualify under our definition of wealth management M&A (i.e., majority interest in a firm between $100M and $20B in AUM), they are important transactions in the industry worth noting. See page 8 for our report criteria. Several sources are used to create this report. M&A data is gathered from press releases, trade articles, and other secondary research sources. All publicly announced transactions involving the acquisition of an independent advisory firm are reviewed for inclusion. This data covers the period from April 1, 2020?April 30, 2020. 2 1 Additional information on acquirer models can be found in the Appendix of the How Independent Broker-Dealers Use M&A to Build Their Businesses white paper.

Wealth Management M&A Transactions

Year to date 2020

Former Firm

1 Athena Capital Advisors

2 HK Financial Services

3 Keatley Wealth Management

4 Huber Financial Advisors

5

Biegel Waller Investment Advisory Services

6 CCP

7 EMM Wealth

8 Sullivan & Serwitz

9 Stratford Consulting

10 RLP Wealth Advisors

11 KeatsConnelly 12 First Ohio Planning

13 Nova Wealth Management Group

14

International Research & Asset Management

15 Resources Investment Advisors

Former Firm Seller Type

RIA

Fiduciary Trust Company

New Firm

RIA

Blucora

RIA

Modera Wealth Management

RIA

Savant Capital Management

RIA

BDO Wealth Advisors

RIA

Mercer Advisors

RIA

Cerity Partners

RIA

Cerity Partners

RIA

Creative Planning

RIA

Perigon Wealth Management

RIA

Cardinal Point Wealth Management

RIA

Mercer Advisors

RIA

Focus Financial Partners/Buckingham Strategic Wealth

RIA

EP Wealth Advisors

RIA

OneDigital Health & Benefits

Approx. Transaction Date

01/07/2020 01/07/2020 01/07/2020 01/08/2020 01/09/2020 01/09/2020 01/14/2020 01/21/2020 01/22/2020 01/27/2020 01/28/2020 01/28/2020 01/30/2020 02/03/2020 02/04/2020

Approx. AUM/A ($M)

5,800 4,400

153 1,600

512 140 3,000 1,000 618 476 400 350 415 394 1,616

Location Lincoln, MA Dubuque, IA Charlotte, NC Lincolnshire, IL Columbia, MD Palatine, IL New York, NY Los Altos, CA Addison, TX Ridgewood, NJ Phoenix, AZ Columbus, OH Atlanta, GA Dallas, TX Overland Park, KS

Acquirer Model1 Bank IBD Large RIA Acquirer Large RIA Acquirer Other Branded Acquirer Branded Acquirer Branded Acquirer Branded Acquirer Large RIA Acquirer Large RIA Acquirer Branded Acquirer Strategic Aggregator Branded Acquirer Other

Several sources are used to create this report. M&A data is gathered from press releases, trade articles, and other secondary research sources. All publicly announced transactions involving the acquisition of an independent advisory firm are reviewed for inclusion. This data covers the period from January 1, 2020?April 30, 2020. 1 Additional information on acquirer models can be found in the Appendix of the How Independent Broker-Dealers Use M&A to Build Their Businesses white paper.

3

Wealth Management M&A Transactions

Year to date 2020

Former Firm 16 Highwater Wealth Management 17 Fountain Financial Associates 18 Vine Street Wealth Management 19 JOYN Advisors 20 Welch Hornsby 21 Wealth Health 22 Ferrell Wealth Management 23 Lindner Capital Advisors 24 Houston Asset Management 25 Coe Financial Services 26 Willingdon Wealth Management 27 Lucia Securities

Former Firm Seller Type

New Firm

RIA

Frontier Wealth Management

RIA

CAPTRUST Financial Advisors

RIA

Robertson Stephens Wealth Management

RIA

Wealth Enhancement Group

RIA

CAPTRUST Financial Advisors

RIA

Mariner Wealth Advisors

RIA

Beacon Pointe Wealth Advisors

RIA

Cardea Capital

RIA

Allworth Financial

RIA

Creative Planning

RIA

Exencial Wealth Advisors

BD

LPL Financial

Approx. Transaction Date

02/10/2020 02/11/2020 02/19/2020 02/21/2020 02/28/2020 03/03/2020 03/09/2020 03/16/2020 04/01/2020 04/09/2020 04/30/2020 04/28/2020

Approx. AUM/A ($M)

180 654 150 1,385 5,500 400 460 325 450 126 800 1,500

Location Glendale, CO Wilmington, NC Mill Valley, CA Atlanta, GA Montgomery, AL Roseland, NJ Winter Park, FL Marietta, GA Houston, TX Wichita, KS Huntersville, NC San Diego, CA

Acquirer Model1 Large RIA Acquirer Branded Acquirer Large RIA Acquirer Branded Acquirer Branded Acquirer Branded Acquirer Branded Acquirer Other Branded Acquirer Branded Acquirer Large RIA Acquirer IBD

Several sources are used to create this report. M&A data is gathered from press releases, trade articles and other secondary research sources. All publicly announced transactions involving the acquisition of an independent advisory firm are reviewed for inclusion. This data covers the period from January 1, 2020?April 30, 2020. 1 Additional information on acquirer models can be found in the Appendix of the How Independent Broker-Dealers Use M&A to Build Their Businesses white paper.

4

Fidelity's M&A Leaders Forum

About Fidelity's M&A Leaders Forum

Recognizing the growing importance of M&A strategies to the future of the wealth management industry and individual advisory firms, Fidelity created the M&A Leaders Forum in 2015.

Comprised of influential leaders actively executing M&A strategies, the Forum community seeks to:

? Increase M&A transaction transparency by identifying individual deals.

? Raise advisor understanding and preparedness to engage in M&A through increased education on key M&A trends and issues.

Advisor Growth Strategies John Furey

Berkshire Capital Bruce Cameron

Buckingham Strategic Wealth Adam Birenbaum

Carson Wealth Management Group Ron Carson

Colony Group Michael Nathanson

Avalon Advisors Chase Robinson

Bluespring Wealth Partners Stuart Silverman

Cambridge Investment Research, Inc. Amy Webber

CIBC Atlantic Trust Eric Propper

Dynasty Financial Partners Shirl Penney

Beacon Pointe Advisors Matt Cooper

Brown Advisory David Churchill

CAPTRUST Financial Advisors Rush Benton

Colchester Partners Frank Kettle

Dynasty Financial Partners Ed Swenson

The Fidelity M&A Leaders Forum is a community of Wealth Management M&A Industry Leaders including leading strategic and financial acquirers, large RIA firms which have created a range of business models focused on growth and sustainability, and Broker-Dealers. The third parties referenced herein are independent companies and are not affiliated with Fidelity Investments. Listing them does not suggest a recommendation or endorsement by Fidelity Investments.

5

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download