Home > Aspiring RIAs > News roundup: Billion-dollar M&A deals, business model comparisons, and a new retirement calculator

News roundup: Billion-dollar M&A deals, business model comparisons, and a new retirement calculator

Practice Management

M&A deals in the financial advisory space appear to be looming large. A report from Schwab Advisor Services finds that the average deal size for an RIA transaction is more than $1 billion in AUM — for the third year in a row, Financial Planning reports. A Schwab executive told the publication that he expects that price tag to remain the standard. See the full story below. Also, advisors often counsel their clients to get help from a team of experts (financial advisor, attorney, accountant, etc.), and consultant Angie Herbers recommends that advisors do the same. “Running a successful business requires both impartial and objective information and judgment,” she explains. She points to four “players” most owner-advisors should hire: attorney, accountant, financial advisor (yes!), and business consultant. Read her column in ThinkAdvisor below.


The new normal for RIA M&A? Billion-dollar deals.

By Charles Paikert

Source: Financial Planning

The billion-dollar M&A deal appears to be the new normal for RIAs. The average deal size for an RIA transaction topped $1 billion in AUM for the third year in a row, through June 30, according to Schwab Advisor Services. And Jon Beatty, senior vice president of sales and relationship management for Schwab, expects that benchmark to remain the industry standard.



The Four People Advisors Need on Their Team Before Trouble Starts

By Angie Herbers

Source: ThinkAdvisor

I recently did a workshop for owner-advisors who want to take their businesses to $1 billion in assets under management at the Bob Veres Insider’s Forum in Nashville. We don’t have room here for all of my presentation, but there is one part of it that I suggest for all owner-advisors, regardless of the size of their firms or their goals: Create a team of your own advisors. No, I don’t mean the ones your hire to serve your clients. I mean the ones you hire for yourself.


Breakaways/Aspiring Advisors

Each wealth management business model has its pros and cons, which can leave aspiring advisors — and breakaways — wondering which one is best-suited for them. Writing from personal experience, Aaron Hattenbach of Rapport Financial, gives a real-world view of the three different business models he has worked in: large wirehouse, RIA aggregator, and fully independent RIA. He discusses the mentality needed to succeed in each model. See the link to his guest post at Nerd’s Eye View blog below.

Advisor Platform Comparison: Wirehouse vs RIA Aggregator vs Independent RIA

By Aaron Hattenbach, guest columnist

Source: Nerd’s Eye View blog

The wealth management industry has evolved significantly over the years, now offering a variety of different business models and platforms for advisors, from traditional wirehouses and independent broker-dealers, to independent RIAs, and increasingly the RIA aggregator and network platforms that support them. As a result, it’s become increasingly challenging for advisors to simply figure which model and path is the best to choose!


Retirement Planning

United Income has come up with a new retirement calculator that uses big data to estimate the chances that each client’s personalized retirement strategy will actually succeed, according to Bloomberg. “It’s deploying huge sets of stats on investment performance, retiree spending, longevity, and other crucial factors to simulate innumerable outcomes,” the article states. Read the full story below. Also, a wealth advisor in Manhattan, who wanted his high-net-worth clients headed for retirement to explore outside interests before they leave their jobs, has created a “value-added” niche of offering travel services. Over the past 20 years, Al Zdenek of Traust Sollus Wealth Management has arranged and also taken trips with clients and others, according to a Financial Advisor article. “I never set out to use travel to differentiate me among competitors,” he told the publication. “I just did it because I liked it, and the fact is my clients liked it.” Read the full story below.


Finally, a Retirement Calculator That Might Help You Retire

By Ben Steverman

Source: Bloomberg

Am I on track for retirement? It’s a simple question. But to answer it accurately and make sure you don’t outlive your money, you need powerful data and high-level math. And, even then, a leap of faith. Online retirement calculators usually make just enough assumptions to be dangerous. What if you live 10 years longer than you planned for? What if the market tanks? What if you need astronomically expensive round-the-clock health care?


This Advisor Plays Travel Agent To Prepare Clients For Retirement

By Juliette Fairley

Source: Financial Advisor

When Al Zdenek, a wealth advisor with Traust Sollus Wealth Management in Manhattan, first started offering travel arrangement as part of his advisory practice more than 20 years ago, it was to develop a deeper relationship with his high-net-worth clients so they could discuss topics beyond politics, pension plans and stock market returns. “Why wait until you’re in your 50s or 60s to see Rome and have experiences in life?” Zdenek asks. “I help them make leisure a part of their lives now.”


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