DEALQUEST PODCAST - Introduction
M&A Talk with Leading RIA Aggregators and Integrators: Introduction
On Wednesday’s episode of the DealQuest Podcast, I discussed attending two RIA M&A conferences, and how this inspired me to create a special series on the DealQuest Podcast dedicated only to the topic of the different deal models and structures of the leading RIA aggregators and integrators.
Well, folks, this is the start of that series. On Fridays, I will bring in leaders of the top RIA aggregators and integrators. These private equity-funded firms cover mainly 91% of all these deals currently happening.
AGGREGATOR AND INTEGRATOR
I’m sure you’ve heard me use these terms on the DealQuest Podcast plenty of times. These are also terms used readily in not just the RIA communities, but other industries, as well. So, what exactly do they mean?
There is a difference between “aggregator” and “integrator”, and not everyone falls under one label.
A pure integrator model is where a firm comes in to buy your existing firm with the goal of customarily rebranding under the buyer’s brand. Some perks of using an RIA integrator:
● 1 brand
● 1 tech stack
● 1 ADV in the RIA industry
● Often a closer-knit community with the intent to scale more quickly
The expectation is, through integration, to focus solely on building the one brand while building equity, enterprise value, and scale within the brand.
Whereas aggregators come in, buy your firm, but generally allow you to keep the branding. This can be done through co-ownership or being a separate entity. Some of the purported perks of aggregators include:
● Not having to sell your branding under the buyer’s name
● Possibly more flexibility on tech choices, not being locked into a tech stack
● You could potentially have more control over decisions
Our discussions will additionally cover how combining both the aggregator and integrator models sometimes can be the best option. In fact, some firms believe the best way to build a better deal is by combining what they perceive as the most beneficial features of both models.
THE RIA SERIES
This series will aim to provide RIA firms and advisors who want to grow their knowledge or are considering selling, and the opportunity to hear directly from multiple leaders of the most active aggregators and integrators in the RIA industry. These leaders will assist in walking you through the landscape of the RIA industry.
Some of these topics include, but certainly will not be limited to:
● Discussing their different models
● Why is one model better than another
● Who are their capital partner(s)
● Whom they’re looking to target
● The deals they have completed
● What their future plans are
● What might be the best fit for you, the listener
● Overall, what’s going on in the industry now
The goal of providing you with this series is as a potential seller or just someone who is looking to understand the various options available out there today and to have access to the ideas and principles that underlie top aggregators and integrators. This series will be giving you access to the visions and plans of the leaders of each of these firms additionally allowing you to evaluate them individually and easily compare them.
I want you to be able to comprehend what some of the best firms and dealmakers did to establish themselves as industry leaders and how that may benefit you by either doing a deal with these leaders or echoing their approaches for your own independent greater success.
Ultimately, although directed more specifically to the RIA industry, this series will also be of great value to those outside the RIA industry. This series will allow a unique insight into a maturing industry that has significant capital flowing but still has much room for additional growth and evolution. The wide range of covered topics will be applicable to many listeners from other industries. My goal is always to assist you in becoming a better dealmaker, no matter the nature of your deal.
Listen to the Full DealQuest Podcast Episode Here
Corey Kupfer is an expert strategist, negotiator, and dealmaker. He has more than 35 years of professional deal-making and negotiating experience. Corey is a successful entrepreneur, attorney, consultant, author, and professional speaker. He is deeply passionate about deal-driven growth. He is also the creator and host of the DealQuest Podcast.
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