FYI: Wealth management firms, big and small, are being bought at a rapid pace. A 10-year bull market has pumped up their values, and bigger wealth management companies and private equity firms are looking to acquire those that have a steady, predictable cash flow from fees.
This is great for the advisers who have ownership stakes in the acquired firms. They receive a large payment from the buyer, usually some multiple of the annual fees they generate. They get a succession plan, since someone else will be there to take over when they retire. And they get to hand off tasks they may not want to do, like risk management, compliance with federal rules, human resources and other back-office functions.
But what’s in it for the client?
Regards,
Ted
https://www.nytimes.com/2019/09/13/your-money/wealth-advisers-mergers-clients.html
