Expert: Vincent Tiseo, Head of Business Strategy and Marie-Laure Humbert, Senior Strategist, GSAM Strategic Advisory Solutions Facilitator: Roderic Rennison, Director, Catalyst Partners
Headlines:
- 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.
- Sentiment is shifting towards aggregators and PE firms.
- Opportunities and challenges post-acquisition - Cultural differences are a major cause of failure.
- Effective communication and leadership support are critical - There is a need to retain key talent, maintain motivation, understand cultural differences.
- 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.
- Consolidation among acquirers - Larger aggregators reaching their limits are looking to be acquired. This will allow further scaling.
- 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
