A billion-dollar registered investment advisory practice that started nearly three decades ago at an accounting firm joined Savant Wealth Management under an M&A deal.
The addition of Domani Wealth, which has four offices in Central Pennsylvania and seven financial advisors and 16 other employees managing $1.53 billion in client assets, boosts Savant to $19.5 billion across 32 offices
Domani's team conducted due diligence for about 18 months in search of a partner firm that could deliver more resources servicing clients and running the business while providing "a place for our team members that will have career advancement opportunities now and into the future," Stephenson said in an interview. Savant won out over two other finalists in a unanimous decision among the partners after about six months of talks.
"To get financial people who are very detailed and very granular to all come to the same conclusions unanimously is a big win," Stephenson said. "For us it was an easy decision once we realized the economies of scale and the similarities. We referred to ourselves as a 'plug and play' with Savant."
The average client assets per M&A transaction in wealth management is on pace to jump 12% this year, to $1.81 billion,
While the amount of transactions across the industry fell 20% year over year in the first three months of 2023, the volume rose from the previous quarter for the first time since the last period in 2021 and the number of deals involving firms with
"After a relatively quiet 2022, financial acquirers are also increasing activity, seeking select opportunities to deploy dry powder throughout the industry," Echelon's report said. "Numerous strategic acquirers took on investors in the first quarter."
Rockford, Illinois-based Savant has received minority investments from
Just as in the case of Capital Directions, another
"Given their activity, they have more coming," Langston said of Savant, noting that firms with between roughly $10 billion and $30 billion in client assets have shown just as much willingness as ever toward deals even if there are a lower overall number of transactions in the industry.
"It's very situational," Langston said. "The reality is that, if people want to accomplish M&A, the window is wide open."
When Savant secured the minority investment by Kelso in 2021, the firm had $12 billion in client assets. The following year, the team led by CEO Brent Brodeski, who has retained majority control of the RIA, unveiled a goal of growing
Domani brings Savant its second partner RIA in Pennsylvania, which is one of 11 states that now have Savant offices. Firms around Domani's size are noticing that they can add operational and service resources for their clients and "grow faster" under a larger parent, Brodeski said in an interview.
"They're investing a lot in brand, in technology, in service lines, in estate planning, taxes and trust," Brodeski said of his company and other "mega RIAs" seeking to add partners nationwide. A few years earlier, many firms simply sought a succession plan that would monetize their business in a good landing spot for teams and clients to then "go to the beach," he said.
"Thats a big trend we're seeing," Brodeski said. "It's less like, 'I want to retire, give me a paycheck and I'll go away.'"
Domani had
In addition to Stephenson, the other partners in Domani include Angela Berkosky, Michael Dinan, Kenneth Eshleman, Jennifer Hill, Scott Michael, Christopher Stock and Thomas Williams. Domani Senior Portfolio Manager Matthew Gavel picked up equity in Savant in the transaction as well. Besides the headquarters in Lancaster, Domani has offices in Hanover, York and Wyomissing.
"A lot of firms our size and smaller are really contemplating how they move forward," Stephenson said. "You don't want to be the last to do something, because you want to do the right thing for clients."
