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Mindy Diamond on Independence: Industry Update on M&A—Part 2

Part 2 of this two-part series explores what drives value and how to build a business that will be 'attractive' to acquirers and garner the highest valuation.


The first part of this two-part series discussed the continuation of a super-active M&A market and how that’s driving interest among advisors at all levels—particularly those who have reached a point where they are considering their future.

Whether reviewing your firm’s retire-in-place program, considering another firm’s recruitment deal, or feeling the tug of your entrepreneurial spirit and the desire to be a business owner, the idea of building something bigger than yourself—that can sell on the open market—can be appealing.

But simply building an independent firm doesn’t guarantee the high multiples you may be seeing other firms selling for. Nor does it mean you will attract acquirers with deep pockets.

So what does a prospective business owner—and even those who currently own their independent practice—need to do to be “attractive” to acquirers and garner the highest valuation?

This episode explores that answer, plus:

  • The different paths you can take to build an independent firm—and what to be aware of when it comes to your end game;
  • IBD vs. RIA—and how the choice may impact a firm’s valuation; and
  • Opting to sell a portion of the business at inception—with examples of business owners who did just that.

Will the frothy M&A market continue? No one knows for sure. But real potential exists for those with their sights set on building a business that could be attractive to an acquirer and command a high price tag at the end of the day—listen in and learn how.

Download: M&A Readiness Assessment

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Listen to more episodes of Mindy Diamond on Independence: A Podcast for Financial Advisors Considering Change.

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