PE Lesson - Growth and integration tips from the US

Financial Advisory

23 November 2023

Advisory DistributorsFinancial AdvisoryGrowthIntegrationM&AOpportunitiesUS

Expert: Vincent Tiseo, Head of Business Strategy and Marie-Laure Humbert, Senior Strategist, GSAM Strategic Advisory Solutions Facilitator: Roderic Rennison, Director, Catalyst Partners


  1. The M&A environment in the US - There is still a lot of opportunity for consolidation among RIAs and independent advisers. Younger advisers are more open to inorganic growth.
  2. Sentiment is shifting towards aggregators and PE firms.
  3. Opportunities and challenges post-acquisition - Cultural differences are a major cause of failure.
  4. Effective communication and leadership support are critical - There is a need to retain key talent, maintain motivation, understand cultural differences.
  5. Balancing organic and inorganic growth - Acquisitions can turbocharge organic growth if done right, but there is a need to set realistic expectations around adviser productivity post-acquisition.
  6. Consolidation among acquirers - Larger aggregators reaching their limits are looking to be acquired. This will allow further scaling.
  7. Impact of external factors - Rising interest rates and increased scrutiny on value for money are slowing activity, but there is still appetite given aging adviser demographics.

Key takeaways:

  • Review current M&A strategy and pipeline in light of the trends and insights discussed
  • Analyse recent integration efforts - what has worked well and where are the gaps
  • Develop a plan for more systematic culture assessment and integration of future deals
  • Discuss how better support with integration communications and change management deliver better post deal retention and productivity
  • Schedule offsites with senior management teams to align on optimal mix of organic vs. inorganic growth
  • Consider piloting a cultural audit of potential acquisition targets as part of due diligence
  • Model impact of rising interest rates on our M&A activity and pricing
  • Prepare for heightened regulatory expectations on post-acquisition client fee rationalisation