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Golden Gate Capital Makes a Bid for Avantax Wealth Management


Golden Gate Capital Makes a Bid for Blucora s Avantax Wealth Management
Private equity firm Golden Gate Capital approached Avantax last week, Bloomberg reports, but it s unknown whether the firm will consider a deal.
Just ahead of Blucora’s shareholder vote on Wednesday, private equity firm Golden Gate Capital submitted a proposal to acquire Avantax Wealth Management, the tax-centric broker/dealer owned by Blucora, according to an April 20 Bloomberg report.
Golden Gate approached Blucora last week, according to Bloomberg, who cites people familiar with the matter. The publication said it could not learn a potential valuation for the wealth management business, which was created from the acquisitions of HD Vest and 1st Global, and it’s unknown whether the firm is considering the bid. ....

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Former Avantax Advisors Complain of Service Declines, Mounting Fees


Former Avantax Advisors Cite Service Decline, Mounting Fees, Shrinking Payouts
Amid a proxy battle with an activist investor, advisors who recently left Avantax say service levels suffered and fees rose after parent company Blucora acquired and combined their broker/dealers.
Last month, RIA and investor Ancora started a public proxy battle with executives of Blucora, the parent company of Avantax Wealth Management, the tax-centric broker/dealer created from the acquisitions of HD Vest and 1st Global. Ancora argues Blucora is mismanaging Avantax, resulting in a net loss of 100 advisors over the previous year, and over 700 advisors over the last five years. ....

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