Investment Management

July 24, 2020

WHITEPAPER | Valuation of Independent Trust Companies

In this whitepaper we review the history of trust companies and how consolidation in the banking industry, changing consumer preferences, and favorable trust law changes have led to the proliferation of independent trust companies. We analyze the average trust company’s income statement and industry-wide trends, such as trust companies’ relative immunity to fee pressure. We consider valuation “rules-of-thumb,” and why they often fail to address the issues specific to a given firm. Finally, we consider the various valuation methodologies, including the use of discounted cash flow models and guideline public company analysis, and how the use of multiple valuation approaches can serve to generate tests of reasonableness against which the different indications can be evaluated.

Download
Download Whitepaper

Continue Reading

The Margin RIA Buyers Actually Underwrite
The Margin RIA Buyers Actually Underwrite

Why the Post-Closing Cost Structure Matters More Than the Historical Margin

RIA buyers often focus less on a seller’s historical margin than on the earnings the business can generate after closing under the buyer’s operating model. Differences in integration strategy, cost structure, and platform capabilities can lead buyers to underwrite materially different margins and values.
RIA Valuation Insights Blog Investment Management
Read Now about The Margin RIA Buyers Actually Underwrite
Does AI Spending Increase an RIA’s Value-or Just Reduce Its EBITDA?
Does AI Spending Increase an RIA’s Value - or Just Reduce Its EBITDA?
AI investment can create value for RIAs by improving capacity, growth, efficiency, and risk management, but the benefits must ultimately translate into stronger cash flow or reduced risk. Recurring AI costs generally remain operating expenses, making measurable adoption and returns critical to valuation.
Making Money in Money Management
Making Money in Money Management

What First Eagle and Wealth Enhancement Can Tell Us About Building Value

Asset managers and wealth managers can reach similar valuations through very different economic models, with relationships, product scalability, growth, and operating leverage shaping the path to value. First Eagle and Wealth Enhancement Group illustrate why sustainable AUM growth and durable cash flow matter more than scale alone.
RIA Valuation Insights Blog Investment Management
Read Now about Making Money in Money Management

Cart

Your cart is empty