m&a directions - dws€¦ · m&a directions matthew b. cooper . partner, president, beacon...

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M&A DIRECTIONS Matthew B. Cooper Partner, President, Beacon Pointe Wealth Advisors

Jill B. SteinbergManaging Director & Partner, Beacon Pointe Wealth Advisors

Shirl PenneyCEO, Dynasty Financial Partners, LLC

Jack B. PetersenFounder & Managing Partner, Summit Trail Advisors, LLC

Moderator: David DeVoeFounder, DeVoe & Company

RIA M&A HAS RECENTLY ACHIEVED RECORD HIGHS

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5781

131145 153

020406080

100120140160180

2013 2014 2015 2016 2017

RIA M&A activity posts fourth successive record yearNumber of transactions involving $100MM+ AUM sellers executed per year

Source: DeVoe RIA M&A Deal Book – Q2 2018

DEVOE RIA DEAL BOOKTM: QUARTERLY ACTIVITY

For institutional use and registered representative use only. Not for public viewing or distribution. Investment products: No bank guarantee I Not FDIC insured I May lose value.

Quarterly RIA M&A activity has been volatile

12 418

25

1023

28 3039

32 30 32 34 38 37 3645 41

32 33

49

32

0

10

20

30

40

50

60

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

2013 2014 2015 2016 2017 2018

Source: DeVoe RIA M&A Deal Book – Q2 2018

ONLY SOME RIAS CAN EXECUTE INTERNAL SALES

For institutional use and registered representative use only. Not for public viewing or distribution. Investment products: No bank guarantee I Not FDIC insured I May lose value.

Source: DeVoe & Company

Size of RIA by AUM

$0 $100MM $300MM $1B $3B

Most Large / Mega RIAs

Too Expensive for Team to Afford

Medium / Some Large RIAs

May Have Qualified Successor In-House Who

Can Afford to Buy Firm

Sole Practitioners

No Successor In-House

(by definition)

Potential for Internal Succession

Have to Sell Externally Have to Sell

Externally

RIA INDUSTRY – MANY CAN’T SELL INTERNALLY

For institutional use and registered representative use only. Not for public viewing or distribution. Investment products: No bank guarantee I Not FDIC insured I May lose value.

$0 $100MM $300MM $1B $3B

Size of RIA by AUM

Low

High

RIAs That Can

Sell Internally

RIAs That Can’t

Sell Internally

Years Until Founder(s) Exit

XAcquisitions

Capital of NextGen

Source: DeVoe & Company

ONLY SOME RIAS CAN EXECUTE INTERNAL SALES

For institutional use and registered representative use only. Not for public viewing or distribution. Investment products: No bank guarantee I Not FDIC insured I May lose value.

Source: DeVoe & Company

Size of RIA by AUM

$0 $100MM $300MM $1B $3B

Most Large / Mega RIAs

Too Expensive for Team to Afford

Medium / Some Large RIAs

May Have Qualified Successor In-House Who

Can Afford to Buy Firm

Sole Practitioners

No Successor In-House

(by definition)

Potential for Internal Succession

Have to Sell Externally Have to Sell

Externally

PANELISTS

For institutional use and registered representative use only. Not for public viewing or distribution. Investment products: No bank guarantee I Not FDIC insured I May lose value.

Shirl PenneyDynasty Partners

Matt CooperBeacon Pointe

Wealth Advisors

Jack PetersenSummit Trail

Advisors

Jill SteinbergBeacon Pointe

Wealth Advisors

SHIRL PENNEY—DYNASTY FINANCIAL PARTNERS

For institutional use and registered representative use only. Not for public viewing or distribution. Investment products: No bank guarantee I Not FDIC insured I May lose value.

©2018 David DeVoe

President & CEO, Dynasty Financial Partners• Founded December 2010• Headquarters: New York, NY• 6 Corporate Locations in 5 States• 67 Employees• 47 Network Firms in 21 States, 160+ Network Advisors • AUM $30B+

Recent Transaction History• 2018 1H Network Growth

• Standalone: 9 Firms, in 7 States, $6B+ AUM • Four $1B+ Firms• M&A: 6 Tuck-in Transactions, $750mm+ AUM

• 2017 Network Growth• Standalone: 13 Firms, $6.5B+ AUM• M&A: 5 Tuck-in Transactions, $750mm+ AUM

0

10,000

20,000

30,000

40,000

Core AUM ($millions)

JACK PETERSEN—SUMMIT TRAIL ADVISORS

For institutional use and registered representative use only. Not for public viewing or distribution. Investment products: No bank guarantee I Not FDIC insured I May lose value.

©2018 David DeVoe

Founder & Managing Partner, Summit Trail Advisors• Founded July 2015• Headquarters: New York, NY• Offices in New York, Boston, Chicago, San Francisco• AUM $5.2B • 15 Advisors• 2018 Barron’s Top 40 RIA and FT300

Transaction History• 2017: Justin Waterman ($500mm, New York)• 2015: Jerry Lucas, Megan Sclafani, Peter Gambee and Michael

Cohen ($1B, New York)

75% AUM Growth Since Inception

MATTHEW COOPER—BEACON POINTE WEALTH ADVISORS

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President, Beacon Pointe Wealth AdvisorsHeadquarters Newport Beach, CA12 Locations in 5 statesAUM $9.6B – Includes $3.3B at Beacon Pointe WA and $6.3B at Beacon Pointe Advisors

Transaction History:2011 – Copperwynd Financial $110M, Scottsdale, AZ2011 – Execial Wealth $50M, San Jose CA2012 – Wealth Management Group $130M, Newport Beach, CA2013 – Pacific Pointe Advisors $100M, Santa Barbara, CA2013 – Independent Financial Advisors $100M, Riverside CA2014 – Breakaway/fold in from CIC $275M, Scottsdale AZ2015 – TPW $330M, Boston, MA2016 – Ironmark Advisors $330M, Plano, TX2017 – Walden Capital (Jill’s team, nearly doubled size since joining) $130M, Philly, PA2017 – Breakaway from Integrated Wealth Management, $110M, Palm Desert, CA

JILL STEINBERG—BEACON POINTE WEALTH ADVISORS

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Managing Director & Partner, Beacon Pointe Wealth Advisors

Location: Philadelphia, PA

AUM: $220MM

Organization Highlights

• Founded Walden Capital Advisors in 2006

• Merged into Beacon Pointe as of Jan 1, 2017

• Nearly doubled AUM and Revenue since joining BPWA

QUESTIONS AND ANSWERS

For institutional use and registered representative use only. Not for public viewing or distribution. Investment products: No bank guarantee I Not FDIC insured I May lose value.

Shirl PenneyDynasty Partners

Matt CooperBeacon Pointe

Wealth Advisors

Jack PetersenSummit Trail

Advisors

Moderator: David DeVoe, DeVoe & Company

Jill SteinbergBeacon Pointe

Wealth Advisors