Are Plunging Markets Impacting FA Business Valuations?

Plus: Did FA Asset Retention Fears Help Fuel the Crypto Craze? And Why Are Ultra-Wealthy Clients Getting More Interested in Private Placement Life Insurance Solutions?

Larry Roth, CEO, Wealth Solutions Report

To My Fellow WSR Community Members:

On Friday, the Labor Department announced the creation of 390,000 new jobs in May, and when the Fed hunts for inflation. Good news is bad news, so the stock markets dropped again as they have repeatedly all year.

We’ve seen so many drops and bears across all asset classes in the past few months that we could name the infamous “drop bear” of Australian legend as Wall Street’s latest mascot.

Wall Street’s new mascot?

In wealth management, falling markets ricochet through almost every corner of the business – But do market woes impact the valuations of independent financial advisor businesses?

Advisor M&A and succession planning experts are certainly closely watching any potential correlation here.

And while the markets have been volatile, crypto assets continue to take it on the proverbial chin, which creates a plethora of new lessons for financial advisors on balancing risks with next gen client demands.

This Week’s Issue

Here’s what we have on tap this week:

  • Sander Ressler of Essential Edge, who serves as WSR’s Expert Columnist for Compliance and Regulatory Affairs, tackles the following central question in this week’s Digital Domain section:  What role did asset retention fears play among high net worth-focused financial advisors who caved to pressures from the next generation of wealth families and moved into crypto too aggressively?
  • Are plunging markets negatively impacting the valuations of independent financial advisor businesses?  In our Upmarket section, we heard from Ryan Grau of FP Transitions on this extremely relevant topic, as M&A advisors, financial advisor recruiters and succession planning experts focus on how to best help owners of independent FA businesses weather current industry and market headwinds.

Also, for those of you focused on the high net worth (HNW) and ultra-high net worth (UHNW) segments of wealth management, please keep an eye out for the following story, which will run by Friday:

This week we take the guess work out of PPLI
  • In the midst of market, economic, and tax uncertainties, new investment solutions at the intersection of wealth and insurance continue to evolve for the extremely wealthy, albeit with plenty of caveats.  In our Investment Solutions & Gatekeepers section this week, Robert Amoruso of Gideon Strategic Partners demystifies private placement life insurance (PPLI) a vehicle for the HNW and UHNW client segments that RIAs and family offices are increasingly exploring.

As always, please share the content that resonates with you – or that you strenuously disagree with, and why – on LinkedIn and other social media with friends and colleagues.

If you have ideas, questions or suggestions for future stories and interview subjects, let us know!

Help us highlight firms and individuals active in LGBTQIA+!

Finally, please note that we will finish Pride Month with a story highlighting firms and professionals active in the LGBTQIA+ community – If you’d like to suggest firms or individuals who are active in this segment of our industry (including yourself or your team), please tell us!

In the meantime, I hope the summer has been off to a terrific start for everybody!


Larry Roth, CEO

Wealth Solutions Report

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