WAYNE, Pennsylvania, July 15, 2015 /PRNewswire/ --
BizEquity, the world's leading online provider of business valuation knowledge and big data, today announces it has put a $1.7 billion valuation on the top 100 US private wealth management firms and predicts that the wealth management industry will increase in value by around 8% and M&A transactions will likely rise by around 40% over the next five years.
The valuation results computed by BizEquity, using its patented Valuation as a Service (VaaS tm) System, were based upon publicly available information from the CNBC top 100 list - available at: http://www.cnbc.com/2015/06/03/cnbc-charts-the-top-100-firms.html.
BizEquity believes that driving the increasing valuation of the sector and fueling the market premiums put on wealth management firms is the dynamic nature of the industry revolving around new technology enabled platforms, which are aiding growth, and the rise of duel licensed registered investment advisors (RIAs). Three such productivity providers of enabling technology to the wealth management sector include eMoney Advisor; Broadridge Financial; and Envestnet.
These factors, together with the average age of leaders of many of these private wealth management firms, BizEquity believes will lead to an increase in overall M&A transactions in the sector by 40% over the next five years.
BizEquity also believes that the wealth management and insurance industry are becoming more and more tied together through the advent of Registered Investment Advisors (RIAs) who sell insurance products. This will lead to increased margin expansion and more diverse and protective revenue streams in independent wealth management firms despite the challenges presented by online providers of wealth management services, so called ROBO advisors.
Michael M. Carter, Founder and CEO of BizEquity, commented:
"Wealth Management firms and insurance companies have been using business valuation and performance knowledge as a new way to take care of their best clients and prospects, business owners. We are proud to not only provide this service for them with our new advisor office platform made for advisors but to actually help them value their own firms as well to show the power of the BizEquity Big Data and Cloud based service."
The actual firm rankings and valuations can be found at: https://topwealthfirms.bizequity.com/report