Mercer Advisors Acquires AFI Wealth Strategies Green Bay–based advisor Andrew Farrah said joining Mercer was a better way to grow his business than rebuilding it himself.
Mercer Global Advisors, an RIA consolidator with $31 billion in client assets, acquired advisor Andrew Farrah’s $240 million AUM firm, AFI Wealth Strategies.
The Green Bay, Wis.–based firm, provides wealth and financial planning to high-net-worth individuals, families and their businesses, according to a recent news release.
“I built a successful and growing practice but had reached the limits of my capacity. To continue to add clients and grow I had to reinvent my business,” said Farrah.
Can AUM-Based Advisors Be True Fiduciaries? During a recent Inside Wealth panel, advisor Rick Ferri argued that AUM-based advisors aren t incentivized to put clients first, while attorney Max Schatzow stressed advisor compensation for value isn t easily quantified. Either way, advisors should expect more client scrutiny over the price of advice.
Financial advisors who charge clients a percentage of assets under management are too often susceptble to conflicts of interest between their business model and what s best for their clients, argued Rick Ferri, an investment analyst and founder of Ferri Investment Solutions.
For services other than portfolio management, an AUM-based fee can be incompatible with being a true fiduciary, Ferri argued during a panel discussion at this week’s Inside Wealth Virtual Conference.
Inside Wealth’s Guide to M&A Options Mercer Advisors, Dynasty Financial and Journey Strategic Wealth executives shared what RIAs should contemplate before selling their firms, either internally or externally.
Principals of advisory firms know that if they want to monetize their practices, there may be no better time than right now.
The reason? An 11-year bull market has driven valuations for firms into record, and possibly unsustainable, territory; a coming increase in taxation on capital gains makes holding off on a sale risky; and a fiercely competitive market for more valuable, high-net-worth clients prompting growth-minded firms to broaden their offerings with in-house estate planning, tax preparation and trust services.