Displaying items by tag: M&A

Thursday, 08 November 2018 09:23

5 Signs of the Next Bear Market

(New York)

Investors have been really afraid of the next bear market for the last few months. Ever since spreads grew tighter and the economy became very strong, fears of a looming recession and accompanying bear market have been rampant. Here are six signs to consider about a potential bear market. Firstly, look at high yield bond spreads. When they start to rise, its shows the credit cycle is ending, potentially signaling a recession. Yield curve steepness (or inversion) is another key metric. Deal activity in M&A is also excellent sign. Weekly jobless claims are another strong leading indicator. Finally, look at investor sentiment. When investors are very confident, that tends to be when the bear bites.


FINSUM: This is a pretty good list of leading indicators. Some are flashing red right now, while other are humming along nicely.

Published in Eq: Total Market
Friday, 27 July 2018 10:28

RIAs and M&A: Don’t Make a Bad Decision

(New York)

Anyone who owns or works for an RIA will probably be aware of the huge boom in M&A in the sector. There seem to be many willing buyers of RIAs at the moment and the acquisition terms for such deals have been getting increasingly sweet. However, within the apparent euphoria, make sure you don’t make a bad decision. For instance, some RIAs might be seeing offers with good valuations, but all in stock of the buyer. There have been a lot of unsolicited purchase offers, which may characterize “an unsophisticated, stupid buyer who is just trying to grab assets”, according to on managing partner at an RIA speaking at a Pershing industry conference. RIAs need to beware because “[Buyers] aren’t just overpaying but may also overpromise and not be able to deliver”.


FINSUM: We suppose the old mantra is best here— if it sounds too good to be true, it probably is.

Published in Wealth Management
Tuesday, 13 March 2018 10:02

M&A Review for Advisors

(New York)

It as another solid year for RIA M&A. Just as in 2016, there was strong deal flow, and the number of transactions closed was exactly the same in 2017 as the year prior. That said, deal size and total AUM declined. The first half of 2017 was significantly stronger than the second half, with the majority of the year’s 94 deals getting done in the first half. TD Ameritrade says distraction from tax reform in the second half of the year was partly to blame for the decline in momentum. Total AUM acquired was $106 bn, and the average transaction size was $1.13 bn.


FINSUM: These look like pretty pretty strong numbers to us. The market still seems to be ripe for further consolidation.

Published in Wealth Management

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