At a glance
- Mesirow's wealth unit has about $15.2 billion in assets under management and pursues both routes.
- Laor, who directs strategic growth and acquisitions at the Chicago firm, said an acquired firm may want to keep its technology, custodians and processes, so integration can be uneven.
- For an RIA weighing the two routes, the trade is a higher upfront price against retention risk.
Mesirow's Nitay Laor told an RIA Edge Austin panel that buying an RIA costs more upfront but moves the entire client book, while recruiting a team costs less and risks client losses, WealthManagement.com reported.
Mesirow's wealth unit has about $15.2 billion in assets under management and pursues both routes. Laor, who directs strategic growth and acquisitions at the Chicago firm, said an acquired firm may want to keep its technology, custodians and processes, so integration can be uneven. Recruited advisors cannot stay on their old custodian and systems, so moving them onto the buyer's platform is easier. Laor cautioned against one integration playbook for every deal.
For an RIA weighing the two routes, the trade is a higher upfront price against retention risk. A recruiting budget should be sized for how many clients actually move.
Reported by the M&A desk from WealthManagement.com. Published . Corrections