Tag: M&A

Strength in Members: How a Well-Curated Advisor Network Drives Growth and Empowers Advisors in Today’s Environment

Advisors’ worlds have been completely revolutionized within the past two years, as they’ve navigated shifting terrain in the regulatory landscape, managed a transition to remote work and subsequent return to the office, and faced mounting pressure from clients concerned about the ongoing coronavirus pandemic.

These changes have prompted many advisors to reevaluate their businesses and approach to the profession, especially regarding where they seek support. Many advisors are turning to advisor networks ― groups of like-minded advisors coming together to achieve a common goal ― in their pursuit of ongoing business growth and personal development.

Great Valley Advisor Group (GVA) is anchored by a culture of connectivity most readily seen through our advisor network. We have thoughtfully designed a model that allows our advisors to operate independently while still being part of a larger team, surrounded by the knowledge and insight of other advisors. As advisors look to the future and seek avenues for continued growth, aligning with a network presents an appealing opportunity.

Cornerstones of the GVA Advisor Network

GVA’s strategically designed, well-curated advisor network drives success and provides a supportive and productive community for members, based on four cornerstones:

  1. Transparency with our partners: We pride ourselves on our commitment to communication with advisors. This means initiating an open dialogue and maintaining candid conversations around what is or isn’t working, where specifically they need more support and how our team can do more to propel their success. These conversations must be frank, and rely on our leaders and advisors coming together, but the resulting transparency and corresponding experience are unmatched.
  1. Facilitating strong advisor relationships: The strength of the GVA network doesn’t come from the top, but from within. We look to our advisors, themselves, to help advance the network as a whole by engaging with fellow advisors, learning from one another and sharing experiences and advice along the way. Advisors who join the GVA network need to be willing to have these types of conversations, and those who engage at this level truly flourish.
  1. Making a consistent and considerable investment in tools: GVA’s business model is built on a foundation of technology and innovation. From day one, our leadership team recognized the importance of implementing strong technology systems, as well as comprehensive tools and resources, and the impact this makes on advancing an advisor’s practice. GVA network advisors gain immediate access to our dynamic technology stack and robust solutions to support their growth.
  1. Providing ongoing support aimed at advisor practice growth: Our work with advisors extends well beyond technology and related tools. We identify their areas of need and how they want to grow, and then implement targeted support and solutions. Our M&A team is a great example of this philosophy in action. Our advisors are entrepreneurs who seek to grow their businesses, and the M&A team offers a clear path forward for such inorganic growth, providing insight on the acquisition process, preparing relevant documentation and information, reviewing deals and more.


A Near- and Long-Term Plan for Growth

The strength of the GVA network lies in our ability to consistently adapt to the changing environment. Our primary goal is to empower advisor growth, and we feel strongly that a well-curated network of advisors is the best way to do that.

Advisors who join our network realize immediate benefits, coupled with longer-term advantages. The network provides a centralized platform yielding high levels of efficiency that advisors cannot leverage elsewhere. The suite of technology and resources they need to create an immediate impact on the business and streamline operations are available at their fingertips.

From a broader perspective, the network’s focus is strengthening our partnerships with advisors and creating the connectivity they need to thrive. We provide resources and the advisors offer insight, innovation and growth to the platform. We strive to continue enhancing our offerings to advisors within the network and realize that both parties add structure as we grow. We select advisors who are innovative in nature and maintain a similar philosophy and outlook on the business landscape.

The feature we plan to implement in the near future is small advisor forums within the larger network, creating connections among advisors facing common challenges or seeking to uncover similar opportunities within their businesses. We are using these as a springboard for stronger relationships within the network and to share valuable insights into where our advisors are taking their practices, so we can add new solutions and services.

Finding Your Network Match

For growth-oriented advisors, finding the right network to align with can make a significant impact on your business. The right network partner is one that shares your values and communication style but celebrates diversity among its community. Diversity in opinion, focus and life experiences will drive a stronger network and add significantly more value for the advisors.

Every advisor who joins the GVA network shares our larger vision and goals for the future. The growth of the company is only as strong as its core, and our advisors are the core of everything we do.

For more insight on GVA and the power our network provides to advisors, schedule a call with us. Connect with us on LinkedIn and Facebook for our latest insights and team updates.

RIA M&A Activity Continues to Reach Record Levels: What Sell-Side RIAs Are Seeking

Mergers and acquisition activity in the RIA industry continues to grab headlines and make history. Despite early setbacks from the coronavirus pandemic, 2020 dealmaking activity bounced back, and Echelon Partners recorded a record-high 205 deals closed last year. The pace has not slowed in early 2021, with Q1 activity achieving a 65% increase over the first quarter of last year.

Our team remains active in the M&A space as well, both at the corporate level and in supporting our partners in completing their own acquisitions. Our team has completed several successful acquisitions throughout our history, and we have built a dedicated M&A team to support our advisor partners as they evaluate acquisition opportunities.

We work closely with advisors who are active acquirers, as well as connect with potential partners for GVA, and are regularly connecting with potential sellers about their objectives. We have seen several common themes emerge from our conversations with sellers regarding what they are seeking in a partner. Here’s what we have observed as the top trends on the sell-side.

A consistent experience is paramount

The acquisition process is inherently disruptive, but for many positive reasons. In some aspects, consistency facilitates a stronger partnership and more seamless transitions. One thing RIAs often look for is a partner who uses the same custodian. Transitioning custodians can be catastrophic for RIAs, a major operational burden that brings a risk of client attrition. Our firm is aligned with LPL Financial, one of the leading custodial platforms in the nation. Our relationship with LPL has been a driving factor in some of our most successful acquisitions and partnerships, making it easier for partner firms to plug into the GVA model on day one.

Enhanced resources and tools close deals

Sellers are not just selling to make a specific profit; they want a clear understanding of how they will benefit from joining your firm. They will be seeking clear details on the resources available to them and how those resources will be delivered. These two factors come together to complete the overall deal structure and help sellers differentiate between potential buyers.

At GVA, our partners come to us because of our in-house expertise, executive leadership team, extensive technology  and operational support services, as well as resources for retirement plan consulting and asset management. We most commonly hear clients ask about access to myself and my partners. We make it a priority to stay actively engaged with our advisors and are consistently creating solutions that facilitate even better communication.

Culture and the impact on staff cannot be overlooked

While the firm’s owners are dictating the sale, the entire firm — from advisors to front-office staff — will be impacted by the transaction. The advisors, the relationships they’ve built with clients and the work they engage in every day are some of the main drivers behind the sale, yet they rarely see financial gain from the actual transaction. Keeping a focus on culture creates an environment where advisors can continue to thrive and allows for a more seamless transaction.

We understand that the sales process is incredibly personal for the seller and we make it a priority to be transparent and responsive throughout the process. We make ourselves available to the entire acquisition partner’s team, ensuring their advisors and support staff have their questions answered, too.

Growth needs to be a mutual priority

Advisors who are aligning with another firm are largely motivated by growth prospects. They want the ability to continue running their business the same way, while having access to added resources, tools and scope to up-level their practice. GVA has built a structured firm with open-architecture features and flexibility for our advisors. Our team is growth oriented, and our goal is to help our partners achieve their goals.

As the sales discussions progress and planning becomes more actionable than aspirational, it’s important that both buyer and seller maintain a flexible perspective. While purchase price is almost always the deciding factor, there are certainly plenty of other opportunities to showcase value. Understanding the mindset of the seller is an important starting point.

For more insight on the M&A process and opportunities for advisors within our network, schedule a call with us. Connect with us on LinkedIn and Facebook for our latest insights and team updates.

Great Valley Advisor Group Acquires U.S. Financial Advisors: Acquisition expands GVA’s footprint to New England and adds significant wealth management capabilities and resources

PAOLI, Pa. — May 11, 2021 — Great Valley Advisor Group (“GVA”), a technology-driven full-service registered investment adviser (“RIA”), has acquired U.S. Financial Advisors (“USFA”). The acquisition expands GVA’s presence in the Greater Boston, Massachusetts, region and adds to its overall wealth and investment management capabilities for high-net-worth (“HNW”) individuals.

Based in Braintree, Mass., USFA is a full-service RIA that provides comprehensive and customized investment, insurance and wealth management services for its clients. Under the leadership of President and Chief Executive Officer John Napolitano, CFP®, CPA, USFA has grown to over $725 million in assets under management and has a network of advisors across the county. The full USFA team is joining GVA. Napolitano will lead GVA’s dedicated HNW practice, which will maintain the USFA branding and offer family office services. The HNW practice will include five additional advisors.

“John and his team have built a strong reputation of excellence in the industry,” said Ryan C. Todd, CPA, Chief Executive Officer and Managing Director of GVA. “Their experience and expertise in serving the HNW base aligns with our focus on elevating our offering and positioning us for future growth. We are excited to integrate the USFA team with our GVA community.”

Napolitano added: “The team at GVA shares our approach to client service, our passion for wealth management and the dedication to growing our advisors’ careers. Our partnership with GVA and the resources its leadership team offer will support our focus on building a dedicated HNW practice and providing the integrated and comprehensive support this specific client group needs.”

“Our focus is on empowering and supporting advisors to grow their businesses, and the relationship we have built with John and his team is a perfect example of this philosophy in action,” said James J. Spinelli, Chief Operating Officer and Managing Director at GVA. “John is clear in his vision and where he intends to make the most impact in the next phase of his career. We are thrilled he is aligning with GVA to make this vision a reality.”

GVA has focused on growth in recent years, strategically adding resources that will benefit the advisors in its network. The firm introduced its dedicated asset management arm, Valor Asset Management in 2016 and has expanded its in-house technology resources and tools for advisors in the last five years. GVA has completed several successful acquisitions in its history and has built a network of nearly 100 advisors across the country. The firm was supported by LPL Financial’s M&A Solutions new premium buyer program in completing the USFA transaction.

“The GVA team has been strategic in its development, building the right capabilities and structure to support a deal of this magnitude,” said Jeremy Holly, LPL Senior Vice President and head of Advisor Financial Solutions. “Our M&A Solutions team supported GVA and USFA throughout a formal sales process, positioning GVA as a qualified and value-added buyer and ensuring the firms were a good fit. We believe this acquisition will be a true benefit to their current and future clients.”

The acquisition closed on May 10, 2021, and will increase GVA’s assets under management by over $725 million. GVA was advised by Stradley Ronon. Financial and legal terms of the deal were not disclosed.

About Great Valley Advisor Group

Great Valley Advisor Group (“GVA”) is a technology-driven full-service registered investment adviser. GVA partners with select independent financial advisors by providing customized technology, investment strategies, compliance, and proprietary compensation tools to help them grow their businesses. Our advisors have the choice and flexibility to run their businesses the way they want. GVA provides advisors with support to get started and technology to help the firm thrive.

For more information, visit greatvalleyadvisors.com.