Talking Points: When a growing firm decides it's time to make the next move

Pershing's Mark Tibergien discusses the challenegs and benefits with mergeres and acquisitions

Sep 26, 2012 @ 10:12 am

By

The following is excerpted from “Unlocking Profitability: Key Differentiators of the Most Successful Advisory Firms,” a webcast that was sponsored by Pershing Advisor Solutions. Kelli Cruz, director of research and consulting for IN Adviser Solutions, was joined by Mark Tibergien, chief executive of Pershing Advisor Solutions. The following points were made by Mr. Tibergien.

On mergers and acquisitions:

M&A activity is increasing, but what we're seeing is adviser-upon-adviser mergers and acquisitions rather than selling to consolidators. The firms need to get to critical mass, so merging or acquisition is a way to do that. Every adviser that uses Pershing has said merging is something that they would consider doing.

On the challenges of M&A:

Sellers have been deluded into thinking their practices are worth more than they are. This can create disruption in the marketplace because you're dealing with people who are emotional about the transaction. [Another thing] is, they look at the numbers and forget about the cultural factor that needs to be considered [in a merger].

On whether M&A activity will grow

As the need for professional management increases, the trend toward M&A will increase. I don't think of it as an exit strategy but a growth strategy. Advisers see this as being more beneficial to them, and how transformative it can be for their business, by offloading some things to other people or by sharing part of their business.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

SOSEScript: getBrightcoveFrontpage.js failed executing with the following error: Error on line 849 position 3: 'b' is null or not an object
SOSEScript: getBrightcoveFrontpage.js failed executing with the following error: Error on line 849 position 3: 'b' is null or not an object

Latest news & opinion

Best- and worst-performing sector funds and ETFs this year

A rising tide may lift all ships, but a bull market doesn't lift all stock sectors. Here are the best- and worst-performing sectors this year, with the top and bottom fund in each sector.

Betterment slapped with $400,000 fine from Finra

Robo-adviser cited for violating customer protection rule and not maintaining its books and records correctly.

Supreme Court ruling on SEC judges unlikely to upend advice industry

But it could give rise to new hearings for some advisers who are already in litigation with the agency such as Dawn Bennett.

It's official: DOL fiduciary rule is dead

The 5th Circuit Court of Appeals issued a mandate Thursday making its March 15 decision to strike down the regulation effective.

Supreme Court curbs SEC administrative law judges

'Buckets of Money' adviser Raymond Lucia is entitled to a new hearing, court rules.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print