Marc Cabezas, Executive Director, Mergers & Acquisitions, Hightower Advisors, joined Julie Cooling, Founder and CEO of RIA Channel, to discuss mergers with growth-minded advisory firms.
Hightower Advisors is a partnership of 130 leading independent advisors nationwide, collectively managing $130 billion. The firm reached this level of AUM through both acquisitions and organic growth. Cabezas notes that prospective sellers are well-educated and take time to review their options.
When considering merger partners, Hightower speaks with hundreds of firms but only completes 10 to 15 deals annually. Hightower is a growth investor seeking to partner with firms that have demonstrated an ability to grow organically.
Once the merger is complete, Hightower seeks to accelerate advisors’ growth, allowing the entrepreneurial advisors to spend time on what adds value to their clients. The firm searches for the best practices that lead to organic growth and spread that knowledge throughout the partnership. Advisors with the best growth have an institutional approach, are intentional on how they go to market, and incentivize the entire organization with goals tied to growth and firm success.
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