[ad_1]
In response to the newest Wealth Administration IQ analysis, the marketplace for advisory companies sizzled in 2022 – with some 70% of respondents saying their agency explored an acquisition, sale or merger on some stage – and monetary advisors are optimistic concerning the worth of their agency and its development prospects in 2023.
On the identical time, they acknowledge that larger rates of interest and a decline in asset values might decrease valuations typically and tilt the benefit to consumers.
Whereas buying one other agency and tucking in an advisor or a group of advisors could also be the preferred method of rising an advisory enterprise inorganically, advisors acknowledge that cultural match is the important thing component in a profitable acquisition, which signifies that nice care needs to be taken in the course of the negotiation course of to guarantee that true cultural alignment exists.
The examine additionally reveals that for advisors fascinated by their retirement, buying a agency with youthful advisors or tucking in youthful advisors is a key step in growing a viable succession plan. And for youthful advisors, merging with a agency headed by an older advisor or buying a e book of enterprise from an advisor seeking to wind down is usually a viable development path.
Dropped at you by
Produced by
Sponsored by
Obtain the total report.
[ad_2]