“Advisors are deeply evaluating their next moves,” said Luke Winskowski, head of the Thrivent Advisor Network, a division of Thrivent, a not-for-profit financial services firm based in Minneapolis. “They are looking for a firm that is stable.”
He stated that Thrivent strives to join with firms that want a real partner and aren't just looking to buy more services.
Advisors who are contemplating making a move want more strength, but many do not necessarily want to move to a firm that is too large, said Jim Dickson, CEO of Sanctuary Wealth, a financial services firm in Indianapolis. “They want to retain control and remain flexible.”
The fact that some foreign buyers are entering the marketplace and that private equity is available for many deals means there is more money available in the system, Dickson said, adding that the industry will see more differentiation among acquiring firms as M&A activity increases in the future.
Carson noted that the industry executives who participated on the panel almost never face off against each other in takeover attempts because they are all different. He predicted the industry will see a few massive players and some deep-niche firms emerge in the next 20 years or less.
“We are ripe for an unforeseen event that will force more mergers,” he said. “The largest firms are now growing the fastest because there is value in what they offer.”