The retirement planning business is a people business.
For some years now, advisory firm owners have enjoyed a sellers’ market that has spurred record merger and acquisition volumes.
According to the firms, part of the rationale behind the move is that it combines two highly complementary businesses into a technology-enabled global platform that is more relevant and responsive to client needs.
High-end brokerage firms are seeing the appeal of being able to serve the middle and mass affluent markets, thanks in large part to the success of Fidelity and Charles Schwab.
One source says the discount brokerage industry of the previous decade is being “merged away,” and that this latest M&A transaction could raise anti-trust scrutiny on other ongoing deals.
CAPTRUST has continued its serial acquisitions, but the biggest merger and acquisition news of early 2020 has been the acquisition of Legg Mason by Franklin Templeton.
With the acquisition, Franklin Templeton will preserve the autonomy of Legg Mason’s affiliates, ensuring that their investment philosophies, processes and brands remain unchanged.
The team of 10 employees, including five advisers, joins CAPTRUST’s wealth management practice, adding $654 million in assets under management.
In a statement to their clients, it was noted that Bob DiMeo, managing partner of DiMeo Schneider, and Mark Wetzel, president of Fiduciary Investment Advisors, have known each other for decades as friends and business confidants.
The advisory, insurance and asset management industries have never been so ripe for consolidation, merger and acquisition experts agree.
Fidelity reports there were 127 registered investment adviser merger or acquisition transactions during all of 2019, which is up 44% over 2018.
The plaintiffs are concerned the combination of the two largest custodian companies in the U.S. will harm independent wealth managers as well as consumers, due to decreased competition in an already concentrated marketplace.
The all-stock transaction is valued at approximately $26 billion; while subject to various closing conditions, the deal is expected to close successfully by the middle of next year.
The global insurance firm continues to grow its stable of retirement plan specialists with the addition of two New York-based advisers.
Linking health care and wealth management; maximizing practice efficiency and cross-selling opportunities; addressing individuals' insurance and financial wellness needs—Hub’s new retirement plan specialist advisers hope to do all of this and more.
The firms’ leaders say they have complementary capabilities and talent to enhance the combined organization’s services for advisers.
Deal volume and value eased during the third quarter after an “unprecedented” first half of 2019.
Registered investment adviser-focused deal volume for the first three quarters of 2019 has already surpassed last year’s total activity for the channel, according to Fidelity Clearing and Custody Solutions.