It's Not A Merger; It's Not A Buy-Out; It's A Partnership For Growth Hot

A new partnership of RIAs has been formed to solve some of the biggest challenges facing independent RIAs today. The critical need for succession, offering ownership to a new generation of advisors, and maintaining continuity for clients in the process are behind the combination of Savant Capital Management and The Monitor Group to form Savant Capital LLC, a national firm worth $2.7 billion.

 

This will enable both firms to retain control of their businesses instead of selling to an aggregator. It also solves the issue of affordability of new advisors to buy into a partnership. The tax consequences of selling a firm can also be complicated. Owners of both firms will receive shares of the new firm, enabling them to mingle the best practices of each while avoiding a taxable event.

 

The combination will promote business growth within the shared focus on delivering client-centered, fiduciary level services. The coming-together of the two firms signifies increased use by RIAs of M&A to grow beyond their organic ability and to give aging partners a win-win solution as they face retirement.