Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

M&A in the wealth management industry is up as valuations slide, according to research

1 Comment
M&A in the wealth management industry is up as valuations slide, according to research

Merger and acquisition activity in the global wealth management industry rose in 2013, while valuations slid, leading to suggestions they could soon hit a floor.

More than 60 deals took place this year, and the UK was the most active participant, with 25 deals involving independent financial advisory (IFA) business models.

But valuations were down, according to information compiled by wealth management consultantsScorpio Partnership, which estimated that the average price relative to assets under management had fallen to 1.22%.

'The M&A tempo has reached a new level. Most deals appear to be pursuing scale with the cost of doing business surging for many while the income levels are still under pressure,' said Sebastian Dovey, managing partner at the company.

'Notably, with valuations falling to a record low, we have seen more private equity firms taking active stakes in the market.'

Dovey added that the research raised the question of how much further valuations could fall.

'Our view is that 1.22% may be running close to the baseline with some higher quality deals still securing a premium,' he argued.

 

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Where A-rated Pattullo is finding the best bond opportunities

Where A-rated Pattullo is finding the best bond opportunities

Henderson Global Investors head of retail fixed income explains how he is managing his fund against the surprise current monetary policy divergence.

1 Comment Play Taxicab Tenner: Allianz Global Investors' AA-rated Simon Gergel

Taxicab Tenner: Allianz Global Investors' AA-rated Simon Gergel

Our much anticpated new series is here! We hand a black cab driver a tenner and grill the manager of the 125-year Merchants trust until the meter runs out.    

Play Europe bulls, a retail boost and why a little inequality can be a good thing

Europe bulls, a retail boost and why a little inequality can be a good thing

This week’s Investment Pulse looks at whether investors should be bullish on Europe, the surprise rise in UK retail sales and if a little inequality is a good thing.

Your Business: Cover Star Club

Profile: meet the duo at the heart of Hargreave Hale's succession plan

Profile: meet the duo at the heart of Hargreave Hale's succession plan

For the first time in the company's history a non-Hargreave is now at the head of the north west broker and asset manager

Wealth Manager on Twitter