Allworth Financial's State of the Industry

With 12 transactions under our belt, we have learned a lot about M&A best practices in our industry. How about you? Do you really understand what it takes to acquire or merge with a firm and realize the value of that deal in a meaningful way?

In April’s State of the Industry podcast, Allworth Co-CEO and host Scott Hanson welcomes Pete Engelken, who has not only overseen 12 partnerships as COO of Allworth Financial, but has a long history of quarterbacking deals in the financial services industry..

On “What it takes to be a buyer of firms,” Hanson and Engelken explain to listeners:

• How to find the right partner and cultural alignments
• Why every deal and negotiation are unique
• Where the money originates, how equity is earned, and who assumes the debt
• Overcoming common (and not so common) legal issues
• What industry regulations are at play in a deal
• Negative vs. positive client consent
• Aggregators vs. integrators vs. partial integrations

It’s a white-hot seller’s market. Listen to two senior leaders of the 4th fastest growing RIA in America[1] come together to talk M&A.

On this episode, Scott Hanson welcomes our newest team member, Scott Collins, who has recently assumed the role of Senior Vice President of Business Development. Scott now manages the vision, strategy, and key initiatives of the Partner Program.

Key Takeaways:

• Where our industry is headed and what forward-thinking advisors should be aware of
• The main differences between aggregator and integrator firms and why advisors should know the difference
• Why there are so many advisors moving towards the RIA model
• The types of firms Collins and his team are seeking to forge partnerships with

To learn more, please visit: https://allworthpartners.com/

On this episode of SOI podcast, we welcome Scott Hanson,: Co-Founder of Allworth Financial as our host. He shares an insightful discussion with Chris Oddy, Allworth's Chief Financial Officer

Key Takeaways:

• The reasons behind the blistering acceleration of M&A
• What’s a fair selling price for a firm in the $200M to $300M AUM range?
• What principals can do to prepare for a potential merger or sale
• Why firms should focus on revenue streams, growth and client mix
• Why 2021 might be a surprising year
• Understanding the importance of the distribution of fixed and variable costs when considering partnering with outside investors

Why would a successful independent advisor with his own RIA and an affiliation with a quality major independent broker dealer choose to merge his firm with an RIA 40 times his size?

One reason might be striking while the iron is hot.  Others include setting up an eventual succession plan, gaining the benefits of scale, help with growth and gaining equity in a firm that is growing faster and more reliably than his or her own firm.  If the end of 2020 is any indication, 2021 could be another record year for M&A activity.

On this episode of State of the Industry podcast, we welcome Scott Hanson: Co-Founder, Allworth Financial (Host) and Dave Bastoni: Founder and Principal of hybrid advisory firm Bastoni Financial Services.

Key Takeaways:

1. Review of M&A trends for 2020 and predictions for M&A in 2021
2. Why we’ve seen an increase in multiples for financial advisory firms
3. Why private equity and other institutional investors are interested in our industry
4. Why an independent BD advisor with $270M in AUM changed his business model to merge with a $10B RIA
5. How David Bastoni navigated a critical growth inflection point – investing and building infrastructure or joining a firm with a platform in place
6. Why many older advisors are making a mistake by setting their firms on cruise control and plan to retire "with their boots on"

To learn more, please visit: https://allworthpartners.com/

On this episode of State of the Industry podcast, we welcome:

• Scott Hanson, Co-Founder, Allworth Financial (Host)
• Brian Murphy, President of Tucson’s Pathways Financial Partners
• Blake Davelaar, CFP® and second in command at Pathways

Key Takeaways:

• Why PFP’s Brian Murphy and Blake Davelaar chose Allworth Financial over every other suitor
• What the partnership means for clients
• The different professional motivations for Brian, in his 60s, and Blake, who hopes to work for another 30 years
• How the special niche of client that PFP serves stands to benefit from the partnership
• Why both Brian and Blake are more excited about the future than ever before

On this episode of State of the Industry, we welcome:

• Scott Hanson, Co-Founder, Allworth Financial (Host)
• Hugh Phillips, former principal at Napa-area HBP Retirement Group, Inc., which, in 2018, entered into a “sell and stay” partnership with Allworth Financial.

Key Takeaways:

• How HBP Retirement Group and Hugh Phillips became part of Allworth Financial in a classic “sell and stay” transaction.
• How Hugh made sure his junior advisor and staff benefitted from the transaction.
• What mental and emotional roadblocks Hugh Phillips had to overcome to complete the transaction.
• What are the logistical and quality of life advantages that Hugh Phillips has enjoyed since the acquisition?
• What was the impact on Phillips’ associate advisor, who’d been with HBP for 15 years, and does he feel about the partnership?

We hope you enjoy. You may subscribe to our podcast by clicking here on iTunes Podcasts.

M&A activity was slow over the last few months, but it was not all quiet. As the ground begins to thaw and offices begin to (cautiously) reopen, hear why some advisors have decided to join forces to secure the desired future for their firm and quit competing for the same clients. 

In this edition of our State of the Industry podcast, join Co-CEO and podcast host Scott Hanson as he welcomes Allworth’s newest partners, Bob Frater and Chris Brown, principals at Houston Asset Management.

Bob and Chris discuss:

• The logistics of the partnership
• Equity considerations
• What was easy, and what most surprised them
• And why they decided to make the change when they did 

Finally, Scott welcomes Allworth’s Chief Operating Officer, Pete Engelken, who discusses firm valuations along with other aspects of the nine unique partnershipsAllworth has completed in just the last three years. 

Find out more here: https://allworthpartners.com/

On this episode of State of the Industry, we welcome:

• Scott Hanson, Co-Founder & Senior Partner, Allworth Financial (Host)
• Matt Brinker, Former head of M&A for United Capital and current Managing Partner at Merchant
• Bob Sponseller, Founder, Capstone Capital, Inc.

Each guest offers a unique perspective on the current state of RIA M&A and how advisors can position themselves in the current marketplace to best serve client and personal goals.

Key Takeaways:

• The strategy behind United Capital’s growth and success
• Unique opportunities for growth for RIAs during a disruptive time period
• What kind of firms and advisors make good strategic partners for acquisitive firms
• How COVID-19 provides opportunity for resourceful advisors
• Predictions for post-coronavirus M&A activity
• Allworth’s most recent acquisition, Bob Sponseller, discusses reaching a growth ceiling and why he’s decided to partner with Allworth

On this special episode of State of the Industry, we provide an 8-Minute Video Update on the most pressing issues facing the financial advisory space today.

Today’s topics include:

• How diversifying the company’s ownership helped us as business owners
• How our capital partners have enabled us to better navigate this uncertain time
• Our growth path since partnering with a private equity firm
• What partnering with a larger firm could mean for your business and clients
• Why it’s never too early to consider your options for succession

Our hosts:

• Scott Hanson, Co-Founder and Co-CEO, Allworth Financial (Host)
• Pat McClain, Co-Founder and Co-CEO, Allworth Financial

We hope you enjoy. To see the video, please click here or copy the URL and paste it into your browser:https://allworthpartners.com/8-minute-update-diversifying/

On this special episode of State of the Industry, we provide an 8-Minute Video Update on the most pressing issues facing the financial advisory space today.

Today’s topics include:

• How to take an introspective look at your business
• What areas of your business you should be taking inventory on
• Creative ideas for new service offerings, delivery methods and pricing models
• Assessing your organization’s openness to change

Our hosts:

• Scott Hanson, Co-Founder and Co-CEO, Allworth Financial (Host)
• Pat McClain, Co-Founder and Co-CEO, Allworth Financial

We hope you enjoy. You may subscribe to our podcast by clicking here on iTunes Podcasts.