Kevin Corbett, Managing Director – Corporate Development & Strategy at Mariner, joined Keith Black, Managing Director of RIA Channel, to discuss deal activity for combining and acquiring advisory firms.
The first half of 2024 experienced a strong volume of mergers and acquisitions activity among financial advisory firms. Corbett’s team at Mariner evaluates 100 deals per year, but only closes transactions with advisory firms deemed to be the best fit.
While Mariner makes multiple acquisitions each year, Corbett is aware that each advisor will only sell their firm once, so they are often hesitant to make this life-changing transaction. Advisors who sell their firm will change from running their own business to being part of a larger organization. Mariner is looking for advisors that are willing to be part of a team rather than those who focus on their own prospects. Advisors who consider the future of their team and their clients in the larger organization are a better prospect for acquisition by Mariner.
The success of a deal is more likely when there is a smooth transition for the advisor and their client into the Mariner framework. Due to its large number of acquisitions, Mariner has a track record of smooth transitions, which can give the selling advisors confidence that their clients will be well treated.
Advisors considering the sale of their firm need to take the time to ensure that they agree to a deal with an acquirer that fits their goals. While private equity firms may offer high deal multiples, they might not be currently operating a financial advisory firm that will bring new technology, research resources, compliance, and economies of scale to the advisor’s practice. Organic growth is a key part of Mariner’s corporate strategy, allowing advisors to benefit beyond the economics of the initial transaction. By taking advantage of the resources offered by Mariner, advisors can free up time that can be spent with their clients and prospects.
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