Sequoia Financial's deal to buy RAV Financial boosts assets to $3 billion

Sequoia Financial's deal to buy RAV Financial boosts assets to $3 billion
The merger also creates a succession plan for RAV Financial founder Bob Valente.
JUL 12, 2016
Sequoia Financial Group is buying RAV Financial, increasing the registered investment advisory firm's assets to about $3 billion. RAV Financial, which provides financial planning to high-net-worth individuals, has about $400 million of assets under advisement, according to Bob Valente, the firm's CEO. Mr. Valente, who will be 69 on Thursday, said he agreed to the deal as part of his succession plan for the firm he created in 1982. With many owners of wealth-management firms approaching retirement, RIAs are considering mergers as a way to cash out. The deal with RAV Financial is the result of a two-year conversation, said Tom Haught, the 51 year-old president of Sequoia, which he founded 25 years ago in Ohio. He said both firms value comprehensive financial planning that comes from a “deep level of engagement” with clients. For Sequoia, the deal also means growth. The firm is gaining assets and an office in Beachwood, Ohio, as well as RAV's expertise in planning for major life event changes, such as long-term care or a divorce, according to Mr. Haught, who said the purchase is expected to be completed in the third quarter. “The client is looking for someone to trust, someone for guidance,” said Mr. Valente, especially in times of transition, whether that be related to retirement, marital status or health care. Sequoia, whose specialty is working with private business owners such as physicians, attorneys and architects, has offices in Akron, Ohio, and Tampa, Fla., according to Mr. Haught. It also has an office in St. Clair Shores, Mich., as a result of its acquisition of GHD Wealth Management in March. The firm typically works with people who have $1 million to $500 million of assets. Mr. Valente said he'll be focused on making sure RAV Financial clients feel comfortable with the merger and the continuity plan that's been set in motion at Sequoia.

Latest News

SEC bars ex-broker who sold clients phony private equity fund
SEC bars ex-broker who sold clients phony private equity fund

Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.

The key to attracting and retaining the next generation of advisors? Client-focused training
The key to attracting and retaining the next generation of advisors? Client-focused training

From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.

Chuck Roberts, ex-star at Stifel, barred from the securities industry
Chuck Roberts, ex-star at Stifel, barred from the securities industry

"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.

SEC to weigh ‘innovation exception’ tied to crypto, Atkins says
SEC to weigh ‘innovation exception’ tied to crypto, Atkins says

Chair also praised the passage of stablecoin legislation this week.

Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest
Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest

Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.