News, Vision & Voice for the Advisory Community


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

Author Lisa Shidler May 31, 2012 at 5:45 AM
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Michael Nathanson promised deals -- and quickly delivered.

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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Mentioned in this article:

MarketCounsel | HamburgerLaw
Compliance Expert, RIA Set-up Firm, Regulatory Consultant
Top Executive: Brian Hamburger

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

DeVoe & Company
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Top Executive: David DeVoe

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