How to Become an Attractive Buyer or Seller in a Hot M&A Market

A conversation with Rich Gill, Senior Partner of Wealth Partners Capital Group

In a milestone episode of the series – our 50^th episode – we explore one of the hottest topics in wealth management today: mergers and acquisitions.

Consider this: Fidelity Clearing and Custody Solutions reported that from January through August of 2019 there were 86 RIA transactions representing the movement of $93.5B assets, and 7 IBD transactions representing $392.0B in assets.

And we’ve seen year-on-year growth in both transactions and assets, with quality buyers vying for strong sellers, and new players sitting at both sides of the table every day—that is, investment firms as well as independent firms that have their sights set on solving for scale, succession and inorganic growth.

In this episode, Rich Gill joins us from the investment firm side of the table, as senior partner of Wealth Partners Capital Group (WPCG)—a firm that is quickly becoming one of the most prominent in the space, having executed transactions totaling over $80 billion in client assets as of this recording.

Rich shares his unique perspective and experience on:

How an independent firm can stand out in a crowded and competitive arena of sellers—and what key things buyers are looking for.
What the universe of potential acquirers vying for quality RIA firms looks like now—and how to determine what type of acquirer is best for an RIA firm.
What a firm owner needs to be aware of before they consider a sale—and what they need to do to prepare the firm for acquisition.
What a prospective firm owner needs to know when it comes to valuation—and how building for maximum enterprise value along a 10-year timeframe will help set the stage for a successful acquisition.
How an acquirer like WPCG finds firms that are attractive acquisition targets—and what type of firm is a good fit for their group.
Plus, the impetus behind the creation of WPCG, their unique model and the key gaps they were looking to fill in the M&A landscape.

Rich’s insights into how both buyers and sellers can differentiate are pivotal in a hot and crowded M&A market. While well-run, uber-successful independent firms may have their pick of the litter when ready to sell, there are opportunities for firms at all levels. So it’s critical to answer the threshold questions Rich shares in this episode before wading into the M&A waters.

It’s an exciting time to be an independent business owner—whether you’re just entertaining the notion of doing so or have been an entrepreneur for decades. In either case, this episode will shed some light on the potential that lies ahead.

Podcast: Play in new window | Download (Duration: 59:16 — 54.9MB)

Related Resources

Determining Enterprise Value: 7 Key Qualitative Drivers for Sellers
Benefits and opportunities aside, the fact remains that many of these potential sellers often do not have a clear picture of how much their businesses are worth, let alone the upsides they may gain from M&A. Read->

Exploring M&A: Finding the perfect match between buyers and sellers
Acquirers typically fit into one of 4 profiles: Here’s how to identify which types of sellers will align best with each. Read->

How to Maximize Growth When Adding One Client at a Time No Longer Seems Like Enough
Advisors with their sights set beyond what organic growth delivers find greater opportunity in the independent space. Read->

Strategically Exploring M&A in the Independent Landscape
Which of the 4 types of acquirers would be a good fit for your business? Read->

About Rich Gill:

Rich is a Partner of Wealth Partners Capital Group. Before starting the firm, he was a Managing Director of AMG Wealth Partners from 2014 to 2017. Prior to AMG Wealth Partners, Rich was Managing Director at Focus Financial Partners. He founded and managed the Focus Connections program, which helped advisors from major brokerage firms establish their own independent wealth management businesses. Earlier in his career, Rich served as Director in Charles Schwab’s Strategy Group and was an analyst at Silver Lake Partners. Rich is a graduate of St. Catherine’s College, Oxford.