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Envestnet acquires Finance Logix on heels of Upside

The Chicago outsourcing behemoth seeks to unify investment planning and financial planning

Wednesday, May 6, 2015 – 9:57 PM by Brooke Southall
Admin:
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Oleg Tishkevich will join Envestnet as financial planning chief.

Related Moves

Envestnet just named an ESG head to meld 'wellness,' 'The Intelligent Financial Life' and 'sustainable investing' into a single nirvana -- that starts outside of the product realm

Ron Ransom earned CEO Bill Crager's trust as chief business development officer and now will define how Envestnet conducts itself as a global citizen and vendor of wellness.

July 27, 2022 – 2:27 AM

Envestnet and Edmond Walters end odd couple 'Apprise' relationship with buyout, but leave open the door to jointly pursue RIA-to-entrepreneur dashboard... later

The MoneyGuidePro owner and eMoney founder execute clean break with Apprise IP rebranded as 'Wealth Studio.' Walters off to the races with a startup and vague promise to collaborate later.

April 6, 2021 – 12:50 AM

Envestnet turns to former FIS executive -- and replaces a CTO -- to help shape up the firm's disparate offerings into a unified whole around the concept of 'wellness'

The Chicago outsourcer gets Donna Peeples to harmonize products and marketing to move beyond the 'TAMP' label as Orion contends for market share with Brinker added.

November 10, 2020 – 2:45 AM

Behind the scenes, Envestnet's board of directors had much to tussle over before finally subtracting the 'interim' from Bill Crager's CEO title

With Jud Bergman gone at a chairman, a power struggle ensued to fill that spot, and the process dragged when taking the company private came under review

April 2, 2020 – 2:34 AM


Mentioned in this article:

Envestnet Inc
TAMP
Top Executive: Jud Bergman

Upside
TAMP
Top Executive: Tom Kimberly




Math

Math

May 6, 2015 — 10:47 PM

Upfront: – $24 million cash (you missed this # entirely in the first version of your article) – $52.67 × 123,410 ENV shares = $6.5 million stock consideration – 123,410 ENV options with a $52.67 strike price, 10 year expiration = ~$3-3.5 million option value depending on your Black Scholes inputs
Therefore total upfront value = ~$33.5-34 million

PLUS cash, stock, and options in earnouts over 3 years.

BMu(sed)

BMu(sed)

May 6, 2015 — 11:16 PM

Interesting development…seems every existing financial intermediary and their brother will have a “robo-advisor” of their very own in the not too distant future.

Unfortunately, the longer-term opportunity is not in supporting the advisor channel – it’s in going direct to consumer with a new, differentiated brand that stands for something different. And that means the Envestnets, Fidelitys, Schwabs technology offerings will remain at a disadvantage.

The sad fact of the matter is that the current lineup of financial intermediaries has failed their clientele…no number of acquisitions will change that. What’s needed are new brands and that’s what the next wave is building out.

FWIW, regardless of how one wants to slice it the days of advisors charging and ongoing 100 bps/yr. are numbered. That model’s changing. Check back in 5 years and tell me I was wrong…;-)

Investor1

Investor1

May 7, 2015 — 1:59 PM

BMu I agree with parts of your comments. The advisors that manage clients with assets of $250k or less that are fee only should have dumped these clients long ago. They are not profitable to any advisory business, therefore you have these robo-advisors. This is for the mass affluent, small investors that never had easy access to investing.

Investors with at least $500k or more and they have the need and want for professional advice that includes financial planning, estate planning, tax planning, trusts, etc will always turn to an advisor or consultant. The advisors that have books filled with smaller clients, well like your said, check back in 5 years!

BMu(sed)

BMu(sed)

May 7, 2015 — 9:55 PM

Investor1 – keep telling yourself that.

Each of the items you pointed out can be better addressed in an automated fashion. Financial planning – wouldn’t a service like Mint be much better suited towards laying out likely forecasts of expenses? wouldn’t it be much easier to automatically update your financial plan online using all your financial documents delivered through Yodlee? Estate planning, tax planning, etc. will also get gobbled up…that’s just the way its going friends.

Of course, two years from now it will be obvious that the $500k clients are better suited to automation but the $1MM + clients that are “safe to advisors”.

Anyways, enough of that. Best wishes to all.

Den

Den

February 28, 2018 — 6:40 AM
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