M&A DIRECTIONS - DWS€¦ · M&A DIRECTIONS Matthew B. Cooper . Partner, President, Beacon Pointe...
Transcript of M&A DIRECTIONS - DWS€¦ · M&A DIRECTIONS Matthew B. Cooper . Partner, President, Beacon Pointe...
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For institutional use and registered representative use only. Not for public viewing or distribution.Investment products: No bank guarantee I Not FDIC insured I May lose value.
M&A DIRECTIONS Matthew B. Cooper Partner, President, Beacon Pointe Wealth Advisors
Jill B. SteinbergManaging Director & Partner, Beacon Pointe Wealth Advisors
Shirl PenneyCEO, Dynasty Financial Partners, LLC
Jack B. PetersenFounder & Managing Partner, Summit Trail Advisors, LLC
Moderator: David DeVoeFounder, DeVoe & Company
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RIA M&A HAS RECENTLY ACHIEVED RECORD HIGHS
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5781
131145 153
020406080
100120140160180
2013 2014 2015 2016 2017
RIA M&A activity posts fourth successive record yearNumber of transactions involving $100MM+ AUM sellers executed per year
Source: DeVoe RIA M&A Deal Book – Q2 2018
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DEVOE RIA DEAL BOOKTM: QUARTERLY ACTIVITY
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Quarterly RIA M&A activity has been volatile
12 418
25
1023
28 3039
32 30 32 34 38 37 3645 41
32 33
49
32
0
10
20
30
40
50
60
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2013 2014 2015 2016 2017 2018
Source: DeVoe RIA M&A Deal Book – Q2 2018
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ONLY SOME RIAS CAN EXECUTE INTERNAL SALES
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Source: DeVoe & Company
Size of RIA by AUM
$0 $100MM $300MM $1B $3B
Most Large / Mega RIAs
Too Expensive for Team to Afford
Medium / Some Large RIAs
May Have Qualified Successor In-House Who
Can Afford to Buy Firm
Sole Practitioners
No Successor In-House
(by definition)
Potential for Internal Succession
Have to Sell Externally Have to Sell
Externally
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RIA INDUSTRY – MANY CAN’T SELL INTERNALLY
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$0 $100MM $300MM $1B $3B
Size of RIA by AUM
Low
High
RIAs That Can
Sell Internally
RIAs That Can’t
Sell Internally
Years Until Founder(s) Exit
XAcquisitions
Capital of NextGen
Source: DeVoe & Company
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ONLY SOME RIAS CAN EXECUTE INTERNAL SALES
For institutional use and registered representative use only. Not for public viewing or distribution. Investment products: No bank guarantee I Not FDIC insured I May lose value.
Source: DeVoe & Company
Size of RIA by AUM
$0 $100MM $300MM $1B $3B
Most Large / Mega RIAs
Too Expensive for Team to Afford
Medium / Some Large RIAs
May Have Qualified Successor In-House Who
Can Afford to Buy Firm
Sole Practitioners
No Successor In-House
(by definition)
Potential for Internal Succession
Have to Sell Externally Have to Sell
Externally
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PANELISTS
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Shirl PenneyDynasty Partners
Matt CooperBeacon Pointe
Wealth Advisors
Jack PetersenSummit Trail
Advisors
Jill SteinbergBeacon Pointe
Wealth Advisors
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SHIRL PENNEY—DYNASTY FINANCIAL PARTNERS
For institutional use and registered representative use only. Not for public viewing or distribution. Investment products: No bank guarantee I Not FDIC insured I May lose value.
©2018 David DeVoe
President & CEO, Dynasty Financial Partners• Founded December 2010• Headquarters: New York, NY• 6 Corporate Locations in 5 States• 67 Employees• 47 Network Firms in 21 States, 160+ Network Advisors • AUM $30B+
Recent Transaction History• 2018 1H Network Growth
• Standalone: 9 Firms, in 7 States, $6B+ AUM • Four $1B+ Firms• M&A: 6 Tuck-in Transactions, $750mm+ AUM
• 2017 Network Growth• Standalone: 13 Firms, $6.5B+ AUM• M&A: 5 Tuck-in Transactions, $750mm+ AUM
0
10,000
20,000
30,000
40,000
Core AUM ($millions)
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JACK PETERSEN—SUMMIT TRAIL ADVISORS
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©2018 David DeVoe
Founder & Managing Partner, Summit Trail Advisors• Founded July 2015• Headquarters: New York, NY• Offices in New York, Boston, Chicago, San Francisco• AUM $5.2B • 15 Advisors• 2018 Barron’s Top 40 RIA and FT300
Transaction History• 2017: Justin Waterman ($500mm, New York)• 2015: Jerry Lucas, Megan Sclafani, Peter Gambee and Michael
Cohen ($1B, New York)
75% AUM Growth Since Inception
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MATTHEW COOPER—BEACON POINTE WEALTH ADVISORS
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President, Beacon Pointe Wealth AdvisorsHeadquarters Newport Beach, CA12 Locations in 5 statesAUM $9.6B – Includes $3.3B at Beacon Pointe WA and $6.3B at Beacon Pointe Advisors
Transaction History:2011 – Copperwynd Financial $110M, Scottsdale, AZ2011 – Execial Wealth $50M, San Jose CA2012 – Wealth Management Group $130M, Newport Beach, CA2013 – Pacific Pointe Advisors $100M, Santa Barbara, CA2013 – Independent Financial Advisors $100M, Riverside CA2014 – Breakaway/fold in from CIC $275M, Scottsdale AZ2015 – TPW $330M, Boston, MA2016 – Ironmark Advisors $330M, Plano, TX2017 – Walden Capital (Jill’s team, nearly doubled size since joining) $130M, Philly, PA2017 – Breakaway from Integrated Wealth Management, $110M, Palm Desert, CA
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JILL STEINBERG—BEACON POINTE WEALTH ADVISORS
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Managing Director & Partner, Beacon Pointe Wealth Advisors
Location: Philadelphia, PA
AUM: $220MM
Organization Highlights
• Founded Walden Capital Advisors in 2006
• Merged into Beacon Pointe as of Jan 1, 2017
• Nearly doubled AUM and Revenue since joining BPWA
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QUESTIONS AND ANSWERS
For institutional use and registered representative use only. Not for public viewing or distribution. Investment products: No bank guarantee I Not FDIC insured I May lose value.
Shirl PenneyDynasty Partners
Matt CooperBeacon Pointe
Wealth Advisors
Jack PetersenSummit Trail
Advisors
Moderator: David DeVoe, DeVoe & Company
Jill SteinbergBeacon Pointe
Wealth Advisors