By: Tobias Salinger
When it comes to growth, location matters
The role of geography in potential business opportunities for financial advisors can be hard to calculate in exact numbers, but the impact of location is changing in notable ways.
Together, the rise of remote and hybrid offices across the industry and the continuing consolidation of registered investment advisory firms have altered the landscape of geographic expansion strategies and M&A deals. Both trends also add complexity to the question of, say, which states have the most potential assets under management in play.
In 2024, out-of-state buyers completed a third of M&A transactions, according to the latest annual survey by deal consulting firm Succession Resource Group. The higher prices that those acquirers paid and the fact that out-of-state investors are “becoming more normal” reflect the altered geographic dynamics after the pandemic, said David Grau, the firm’s founder and CEO.
In the past, “Very few retiring advisors or sellers would consider a buyer who was not within driving distance,” he said, citing the continuing rise in the share of transactions involving out-of-state buyers. “That’s an absurd figure in a professional service business.”
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Disclaimer
This article was first published by Tobias Salinger. The original article can be found here. All rights to the original content are held by FinancialPlanning.com.