SkyView Partners, a correspondent lender that helps independent advisors, broker dealers and RIAs pursue mergers, acquisitions and succession plans, has launched Advisory Practice Board of Exchange, a subscription-free online platform for buying and selling wealth management practices that features access to bank financing.
“We sought to launch an online M&A experience for independent and registered investment advisors that would narrow the dislocation between the number of buyers and sellers coming to market in an efficient and confidential platform. Currently, we have approximately two buyers per every seller on APBOE,” SkyView CEO Scott Wetzel said in a statement.
The website, APBOE.com, has several features to attract prospective buyers, including clear seller search results, site participation anonymity and a platform to compete for seller listings. Additionally, to promote anonymity and productivity for sellers, APBOE requires them to choose an M&A consultant. Among the choices are DeVoe & Company, Echelon Partners and Advisor Legacy.
“It’s been our experience that ‘for sale by owner’ transactions commonly do not close, and, if successful, sellers experience significant heartburn. The assistance of an M&A consultant drastically increases the probability of closing and commonly increases net proceeds,” Wetzel added.
Together with their M&A consultants, sellers can search prospective buyers based on their PurchasingPower score, a proprietary ranking methodology gauging buyer creditworthiness and preparedness to acquire a practice. A buyer’s PurchasingPower score is derived from 31 data points verified by the APBOE staff. For buyers to compete, they need to develop a verified PurchasingPower score by completing a practice profile, in addition to providing substantiating documentation.
In 2018, SkyView initiated construction of an ecosystem of community and regional banks interested in funding loans from wealth management industry participants. SkyView has engaged New York-based investment banking firm Sandler O’Neill + Partners as its financial advisor.