1、Wealth Management Market UpdateSPRING 2023 UPDATEMergers and Acquisitions Remain Robust Wealth management M&A activity ended in 2022 with 273 transactions,making it the ninth consecutive year of record activity,a 10.5%increase from 2021.2023 Q1 M&A activity slowed slightly,with 48 transactions,but r

2、emains active as strategics see M&A as a primary approach for growth and private equity continues to invest in the space.Transaction volume was generally evenly weighted across platforms managing$250 million to$5 billion of AUM,but higher outside of these ranges.Notable activity includes Blucora,Inc

3、.becoming a pure play wealth manager and IBD through the divestiture of TaxAct,its tax software business,and also Tiedemann closing its SPAC IPO.Private Equity InvolvementSponsors continue to enter the space and grow their existing wealth management platforms through bolt-on transactions.Theres an e

4、stimated 100 private-equity-backed platforms in total.Clayton Dubilier&Rice LLC has agreed to acquire Focus Financial Partners Inc.for$53 per share in cash,representing a 14.9x valuation of LTM EBITDA.KKR-backed Beacon Pointe Advisors,LLC has acquired Pinnacle Wealth Management an employee-owned inv

5、estment manager.KKR-backed Beacon Pointe Advisors,LLC has acquired Ailsa Capital,Inc.,an employee-owned investment manager.Onex Corp.-backed OneDigital Investment Advisors has acquired the wealth and retirement services of The Huntington National Bank.Public Valuations Public company valuations for

6、wealth managers with AUM greater than$1.0 billion have generally trended between 15.0 x19.0 x over the past five years.Managers with less than$1.0 billion in AUM typically have traded at a significant discount over the same period of approx.4.0 x6.0 x.Activity Remains Strong with Dynamic Deal Terms