Avantax strikes deal for $760M wealth business

Avantax, the tax-focused wealth business within Cetera’s larger organization, has significantly boosted its profile through a major acquisition.

The firm announced Wednesday that it is acquiring the wealth management business of Integrated Tax & Wealth Strategies, which managed approximately $760 million in client assets as of December 31, 2023 across numerous relationships built over 25 years.

The founder of Integrated Tax & Wealth Strategies, Brian Stephens, will maintain his leadership role within the tax practice. His team of financial advisors and wealth management specialists – including Matt Murch, Joseph Webster, Sabrina Pledger, Amy Villarreal, Kyle Pledger and Cheryl Wright – are to be integrated into Avantax Planning Partners as W-2 investment adviser representatives.

Stephens highlighted Avantax's strategic focus on integrating tax preparation with financial planning, a unique approach within the wealth management industry, as he emphasized the synergy between the two firms.

"I've seen several other advisors align with Avantax, and while I looked at various options even outside of Avantax, I realized that other broker-dealers don’t understand our business model where tax preparation is such a key component of the investment relationship," he said.

"I feel Avantax is the right answer because they are 100 percent aligned with my belief that the best solution for clients is to keep investment and tax preparation tied together."

Michael Molnar, who was just recently named head of corporate development at Cetera, outlined the personalized approach taken in structuring this deal.

"For each deal, the Avantax discovery process starts with what’s most important to that business owner," said Molnar, the firm’s SVP of corporate development, M&A and succession planning. "Brian outlined how he wanted his clients to be served, the growth opportunities he hoped to create for his team and partners, and what he wanted his next several years to look like."

Todd Mackay, president of Avantax Wealth Management, also expressed enthusiasm for the future of the newly expanded business.

"Brian’s ability to expand his business, create growth opportunities for his team, and provide excellent service to his clients is exemplary," Mackay said, calling the new relationship “a natural fit.”

“We are eager to see Brian and his team continue growing the integrated tax and wealth management business with Avantax as we focus on further strengthening their already powerful client relationships," Mackay said.