Financial Advice: Investment opportunities return 

It’s been a tricky year for investors in the wealth management sector. 

Last year we discussed what to look for and how to create value in financial advice businesses. You can read our article here.

Since then, there have been fewer deals, as a combination of issues made investors and management teams more cautious. But as things have settled down, deal volumes are now increasing. 

Key issues for investors include:  

  • paying high multiples; 
  • justifying even higher adjusted EBITDAs;  
  • the difficulty of organic growth; 
  • AUM volatility; 
  • choppy new business inflows;
  • how to retain key advisers post-acquisition;  
  • whether vertical integration is necessary; 
  • how to differentiate on exit; and  
  • the challenges of a buy-and-build strategy in a market with 30+ consolidators (higher prices and fewer targets).  

Some financial advice firms have also cooled on the idea of taking investment or bolting on to a larger platform. They prefer to stay independent and/or can take on debt to fund their own buy-and-build strategy. 

We have been helping investors and management teams answer these questions. Speak to the team if you would like to discuss opportunities in the wealth management sector. 

Simon Hemsley, Partner & Head of Financial Services

[email protected]
+44 7957 340 534 

Email Simon

Solomon Ishack, Senior Consultant

[email protected]
+44 7943 036 633

Email Solomon