Quantum Growth for Financial Advisors Financial Advisors and Accounting Firm Acquisitions – Understanding the Bigger Picture with Todd Steinberg and Shannon Hay
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Jan 24, 2025 Todd Steinberg, managing director of Thrive Financial Group, and Shannon Hay, senior vice president at United Midwest Savings Bank, delve into the intricacies of accounting firm acquisitions. They discuss the evolving landscape of financial advisory and accounting firms as they merge services for a comprehensive client experience. The conversation highlights the importance of debt service coverage in acquisitions and the necessity of relationship-building for successful partnerships, providing valuable insights for advisors looking to expand.
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The Rise of the Family Office Experience
Clients desire a family office experience, combining tax, wealth, and business advisory services. Financial advisors are increasingly acquiring CPA firms to meet this demand.
Shift in the Accounting Industry and Acquisition Opportunities
The accounting industry is shifting towards advisory services due to advancements like AI and software. This creates an opportunity for wealth managers to acquire CPA firms at relatively lower multiples.
Favorable Valuation of CPA Firms
CPA firm valuations are currently lower than wealth management firms, presenting a buying opportunity. This allows for attractive returns and access to a client base for wealth management services.