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Shorts: Why Savvy Wealth is calling an $80-million LPL poach a 'monumental' milestone • Vanguard cleans up legal matters, settles two suits, loses third • Groupthink comes to RIA biz as firms, one after another, cut staff

Savvy hopes one will trigger a recruiting rally • Vanguard might just be in a settling mood, ends two long-running suits • At least five major RIA industry players are applying a 5% rule ... to cut staff

Author Oisin Breen October 28, 2023 at 12:06 AM
Admin:
no description available
Michael Most: I feel the possibilities are endless.
Brooke Southall and Keith Girard contributed to the editing of this article.

Brian Murphy

Brian Murphy

October 29, 2023 — 2:43 AM
Savvy - what a waste of time and effort. So I guess the game here is "multiple" arbitrage. Buying firms based on the promise of a higher expected return (lower cost of capital) relative to strategic and financial buyers. Hope seems to be that acquired firms will drink the startup kool-aid, accept a lower acquisition price (due to the expected higher expected return on V/C money - ie, tech investments are typically priced on Price/Revenue multiples) than a strategic or financial buyer (P/E) would be willing to pay (using traditional cash flow multiples). Just another ponzi scheme masquerading as a technology startup...hooray. Play stupid games, win stupid prizes!

Related Moves

Farther struts its startup magic and shows why a $375-million RIA can be worth $50 million -- by getting four advisors to bring books of business just to be part of the enterprise

The San Francisco firm claimed its software was at another level and now advisors are betting careers on it, though not of the UHNW variety imagined

November 2, 2022 at 3:27 AM

Farther hires Ching Tao as 'head of people,' and she discloses three weapons the VC-backed RIA with $250-million of AUM is arming her with to attract gobs of premium talent

One ex-Goldman Sachs co-founder in his 30s nabbed an ex-Goldman exec in her 50s and promise to arm her with many flexible lures, like remote work and maybe 1099 jobs -- and shares in the startup early on.

September 16, 2022 at 8:26 PM


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