The New Buyers: Familiar Names with Deep Pockets
June 29, 2018
By Mindy Diamond
There is an interesting trend emerging in the wealth management industry: banks and traditional brokerage firms starting to acquire registered independent advisory businesses. It should come as no surprise—as the proverbial puck heads toward independence with advisors large and small trading their W-2s for 1099s—that we’re seeing more of these two scenarios:
- The firms these advisors left—the banks, wirehouses and regionals—are looking for ways to replace the revenue lost from attrition. And more significantly, they see the acquisitions as opportunities for long-term growth.
- The now independent advisors are looking for ways to solve things that might be impeding their own growth or ability to fulfill their vision, such as paving paths to succession, monetizing their businesses, offloading the day-to-day minutiae and gaining scale.