JERSEY CITY, N.J., April 27, 2011 — Pershing Advisor Solutions LLC, a BNY Mellon company, announced today the availability of a new independent study, Real Deals 2010: Definitive Information on Mergers and Acquisitions for Advisors, that provides an in-depth analysis of important trends shaping the merger and acquisition (M&A) marketplace in the advisory industry. The study finds that M&A activity among firms with more than $500,000 in revenue was flat in 2010, valuations were lower than in past years, both the type of transactions and the participants continued to change significantly, and yet an uptrend in deal activity is expected.
Real Deals 2010, developed with FA Insight, builds on key findings from past Pershing Advisor Solutions' Real Deals studies published in 2006, 2008 and 2009, and provides a practical guide for advisory firms that are contemplating a sale, merger or acquisition. The report begins with a review of key developments in mergers and acquisitions since the release of the last Real Deals in 2009, and provides insight that is derived from a decade of transaction data compiled specifically for the Real Deals report series. This year, special attention is devoted to the concept of firm value—how it is measured and how owners can better influence and build value within their advisory firms.
Highlights from the new study include:
"Advisory firm owners need to maintain a solid understanding of current M&A trends as part of their own planning and management process," said Kim Dellarocca, director in global marketing for Pershing LLC. "Owners would be wise to run their firms with an eye toward long-term value creation and a thoughtful transition process for their practice and their clients. This approach will ensure sustainability that isn't dependent on a key principal."
"Unless the owner's preferred resolution is shuttering a firm, some type of a sale, merger or acquisition is inevitable," said Dan Inveen, principal at FA Insight. "Every advisory firm owner must someday come to a monumental decision concerning their business, and the Real Deals series was designed to enable RIAs to better understand the trends impacting transactions in order to realize the most value from their firms."
Real Deals 2010 is a component of Pershing's Ideas Without Limits(SM) thought-leadership program and was commissioned by Pershing Advisor Solutions LLC and independently executed by FA Insight. Transaction data and expert interviews form the foundation of this report. A variety of sources, including survey data, trade publications and regulatory filings also contributed to the development of the transactions database. To receive a copy of the study, please send an email to firstname.lastname@example.org or visit www.pershingadvisorsolutions.com.
Pershing Advisor Solutions LLC (member FINRA/SIPC) is an affiliate of Pershing LLC and a leading custodian to independent registered investment advisors and dually registered advisors working in conjunction with many of Pershing LLC's introducing broker-dealer customers. Pershing LLC (member FINRA/NYSE/SIPC), a BNY Mellon company, is committed to delivering dependable operational support, robust trading services, flexible technology, an expansive array of investment solutions, practice management support and service excellence. Through an innovative custody platform, Pershing Advisor Solutions delivers superior expertise and scalable and customizable solutions to help independent registered investment advisors manage and grow their businesses. Additional information is available at www.pershingadvisorsolutions.com.
Pershing LLC (member FINRA/NYSE/SIPC) is a leading global provider of financial business solutions to more than 1,500 institutional and retail financial organizations and independent registered investment advisors who collectively represent more than five million active investors. Located in 21 offices worldwide, Pershing and its affiliates are committed to delivering dependable operational support, robust trading services, flexible technology, an expansive array of investment solutions, practice management support and service excellence. Pershing is a member of every major U.S. securities exchange and its international affiliates are members of the Deutsche Borse, the Irish Stock Exchange and the London Stock Exchange. Pershing LLC is a BNY Mellon company. Additional information is available at www.pershing.com.
BNY Mellon is a global financial services company focused on helping clients manage and service their financial assets, operating in 36 countries and serving more than 100 markets. BNY Mellon is a leading provider of financial services for institutions, corporations and high-net-worth individuals, offering superior investment management and investment services through a worldwide client-focused team. It has $25.5 trillion in assets under custody and administration and $1.2 trillion in assets under management, services $11.9 trillion in outstanding debt and processes global payments averaging $1.7 trillion per day. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation. Additional information is available at www.bnymellon.com.