The Rise in Interest Rates and the Impact on Wealth Management M&A Strategies
Industry experts discuss the current state of M&A strategies in wealth management.
Over the last several years, merger and acquisition activity within the financial-advisor industry remained strong, with valuations for registered investment advisory firms in 2021 up 15-25% from a few years ago and hitting an all-time high.
However, to tamp down inflation, the U.S. Federal Reserve is on track to hike interest rates at various points in 2022. These increases could signal the end of the era of ultra-cheap money that helped fuel the period of M&A activity, especially for younger advisors seeking to buy businesses.
Hear from Steve Leivent, Co-GM and SVP, SS&C Advent, who is joined by David DeVoe, CEO and Founder, DeVoe & Company, and Richard Frisk, Managing Partner and CEO, Gladstone Wealth, as they discuss how the Fed may be inadvertently slowing down M&A strategies in 2022.
Topics will include:
The recent increases in interest rates
Due diligence critical for buyers and sellers
M&A selling points provided by technologically advanced firms