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Mintz Levin sells its $1.2 billion RIA, and Focus Financial nabs the assets through a partner firm

In an all-Boston deal, The Colony Group becomes a $2.5 billion behemoth only months after hooking up with the big New York consolidator

Thursday, May 31, 2012 – 5:45 AM by Lisa Shidler
Admin:
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Michael Nathanson promised deals -- and quickly delivered.

Related Moves

With RIA valuations ticking down and successions ticking up, Focus Financial deep sixes 'drunken sailor' pause, forgoes buyback plan and adds a CEO

CEO Rudy Adolf sees a 'softening' in multiples after a couple of frothy years when CI Financial dominated headlines and big RIA deals

August 13, 2022 – 12:39 AM

Looking past Covid-19 pandemic, Louisiana RIA buys $1-million building after hitting $1 billion in AUM and hiring the town's mayor

Summit Financial Wealth Advisors was sold to Focus Financial in 2014, growing its assets by $400 million since then but keeping staffing about the same

December 17, 2020 – 3:02 AM


Mentioned in this article:

MarketCounsel | Hamburger Law Firm
Consulting Firm, Compliance Expert, Legal Services for RIAs
Top Executive: Brian Hamburger

Advisor Growth Strategies, LLC
Consulting Firm
Top Executive: John Furey

DeVoe & Company
Consulting Firm
Top Executive: David DeVoe




Jeff Spears

Jeff Spears

May 31, 2012 — 4:55 PM

Accountants and lawyers started wealth management businesses during the wealth management bull market (my term). They were successful because they could actually cross sell their clients wealth management services which charged a annual fee vs a one time fee.. It was also a good business model because the clients trusted their accountants and attorneys and “anyone could make good investment decisions”....

Interesting that as we have entered the wealth management bear market (my opinion) that wealth managers see the need to merge with accounting firms and law firms and visa versa.

Wonder what clients think about these changes?

Jamie McLaughlin

Jamie McLaughlin

June 1, 2012 — 11:53 AM

Clients are either confused by or oblivious to these corporate actions. As long as their relationship manager or team is unchanged and there’s a presumption of greater resources (i.e. services), they will grant their consent and stay the course.

This passive tolerance will be tested, however, should the parent (in this instance, Focus Financial, wish to exit). Size may confer some operating leverage for any individual firm or roll-up strategy, but clients prefer the client experience of a boutique.

This “tension” between the firm-level business economics and the client experience is at the heart of the challenges facing the industry.

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