PRNewswire
JERSEY CITY, N.J.
(NYSE:BK)
Dec 9, 2009
JERSEY CITY, N.J., December 9, 2009 — A new independent study published by Pershing Advisor Solutions LLC, a BNY Mellon company, and FA Insight finds that while merger and acquisition (M&A) activity slowed during the economic downturn, transactions among independent registered investment advisory (RIA) firms are poised for resurgence, as a new market environment emerges and the pool of potential buyers undergoes dramatic change.
The study, entitled Real Deals 2009: Definitive Information on Mergers and Acquisitions for Advisors, provides RIAs with an in-depth analysis of important trends shaping the M&A marketplace in the advisory industry. It's also a valuable guide for helping RIAs better assess a wide range of developments that include the level of transaction activity, the impact of the economic climate on valuations and deal terms, the shifting appetite for transactions among leading buyer and seller types and the most notable deals announced in the past year.
Real Deals 2009 builds on key findings from Pershing Advisor Solutions' two previous Real Deals studies published in 2006 and 2008. This foundational analysis offers RIAs a backdrop to explore critical lessons and best practice guidelines for firms contemplating or pursuing a sale, merger or acquisition. The study emphasizes that carrying out a successful transaction involves much more than just negotiating deal terms. Advisors are offered guidance on critical, but often overlooked, success factors that transacting parties must consider in the months leading up to and immediately following the formal closing of a deal. Topics range from pre-transaction planning and due diligence to post-transaction acclimation and integration. Highlights from the new study include:
Mark Tibergien, chief executive officer of Pershing Advisor Solutions, said, "Capital constraints, economic uncertainty and increased levels of caution characterize the current attitudes of marketplace participants and serve as a leading catalyst for slowing M&A activity. However, despite the current slowdown, industry M&A activity appears poised for a rebound. Advisory firm owners are interested in liquidity, serial buyers remain strongly committed to their longer-term acquisition strategies and the pace of RIA-to-RIA mergers and acquisitions has increased."
Dan Inveen, a Principal at FA Insight, added, "Immediate financial reward is no longer the primary measure of deal-making success. Today's best transactions are founded on a shared vision and commitment of parties to create long-term value. It is essential that both buyers and sellers understand the other in terms of personality, compatibility and cultural fit."
Real Deals 2009 is a component of Pershing's Ideas Without Limits(SM) thought-leadership program and was commissioned by Pershing Advisor Solutions LLC and independently executed by FA Insight. Transaction data and expert interviews form the foundation of this report. A variety of sources, including survey data, trade publications and regulatory filings also contributed to the development of the transactions database. To receive a copy of the study, please contact Pershing Advisor Solutions at (800) 445-4467 or via email at pasinformation@pershing.com.
Pershing Advisor Solutions LLC (member FINRA/SIPC) is an affiliate of Pershing LLC and a leading custodian to independent registered investment advisors and dually registered advisors working in conjunction with many of Pershing LLC's introducing broker-dealer customers. Pershing LLC (member FINRA/NYSE/SIPC), a BNY Mellon company, is committed to delivering dependable operational support, robust trading services, flexible technology, an expansive array of investment solutions, practice management support and service excellence. Through an innovative custody platform, Pershing Advisor Solutions delivers superior expertise and scalable and customizable solutions to help independent registered investment advisors manage and grow their businesses. Additional information is available at www.pershingadvisorsolutions.com.
BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). BNY Mellon is a global financial services company focused on helping clients manage and service their financial assets, operating in 34 countries and serving more than 100 markets. BNY Mellon is a leading provider of financial services for institutions, corporations and high-net-worth individuals, providing superior asset management and wealth management, asset servicing, issuer services, clearing services and treasury services through a worldwide client-focused team. It has $22.1 trillion in assets under custody and administration and $966 billion in assets under management, services $11.9 trillion in outstanding debt and processes global payments averaging $1.6 trillion per day. Additional information is available at www.bnymellon.com.