Corporate Valuation, Investment Management

February 12, 2018

What RIA Owners Need to Know About the New Tax Law

For this week’s post, we’re offering the slides and recording from our recent webinar on the tax bill’s impact on the investment management community.  On balance, we believe most RIAs are better off as a consequence of the legislation, but there are nuances to the “win.”  Specifically, the webinar covers the following observations on the recent bill:

  • U.S. equities have, overall, benefited from the tax bill
  • Higher valuations have driven ongoing revenues higher at investment management firms
  • Many RIA margins will expand as a consequence of improved economics
  • Investment management firm valuations will grow in many cases because of stronger cash flow
  • RIAs structured as tax pass-through entities (S corps, LLCs, Partnerships) may want to consider reorganizing as C corporations
So feel free to tune in or scroll through if any of these topics are pertinent to you or your firm. Download Slides

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When RIA Ownership Structures Outlive Their Usefulness
When RIA Ownership Structures Outlive Their Usefulness

Gradually, Then Suddenly

Ownership structures in RIAs often decline gradually before problems become visible, leading to sudden impacts on value. Proactive planning and evolution are essential to sustaining long-term growth, talent retention, and client confidence.
Mercer Capital to Attend and Speak at the 38th Annual ABA RPTE National CLE Conference
Mercer Capital to Attend and Speak at the 38th Annual ABA RPTE National CLE Conference
Mercer Capital will attend and participate in the 38th Annual American Bar Association Real Property, Trust and Estate (RPTE) National CLE Conference, held April 29–May 1, 2026, in Chicago, IL, at the Loews Hotel. Travis Harms and Tim Bronza will represent the firm, with Harms also participating as a speaker.The RPTE National CLE Conference is one of the ABA’s flagship gatherings for real property and estate planning professionals, bringing together attorneys and advisors for several days of in-person education and discussion. Topics this year range from estate and gift tax planning and charitable strategies involving closely held businesses to real estate transactions and fiduciary considerations, with an emphasis on practical takeaways for day-to-day practice.Harms will serve as a panelist on the session “Fair (Market) Warning: This is Not a Final Determination – Practical Advice from Tax Litigators."Travis Harms is President of Mercer Capital and leads the firm’s Family Business Advisory Services Group. He works with multi-generation family businesses on valuation, financial education, and strategic planning, helping families align ownership structures and long-term objectives.Tim Bronza is Managing Director of Mercer Capital’s Florida office. He has extensive experience valuing business interests for federal gift, estate, and income tax purposes and works with clients and their advisors on complex valuation matters across a range of contexts.Mercer Capital regularly supports attorneys and fiduciaries in these areas through independent valuation and financial advisory services. The firm’s work includes analyses prepared for gift and estate tax planning, succession planning, and dispute resolution, with an emphasis on producing clear, well-supported conclusions that can be used in both planning and adversarial settings.Mercer Capital looks forward to participating in this year’s conference. To learn more about the RPTE conference, visit the event’s website: https://rptecleconference.com/.
Earnouts Aren’t Going Away, But They Are Changing
Earnouts Aren’t Going Away, But They Are Changing
Earnouts remain a core component of RIA transactions, but evolving structures are shifting more risk onto sellers through longer timelines and stricter performance criteria. Understanding how these mechanisms impact real deal value is essential for evaluating transaction outcomes.

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