Page 476 - DCAC February 2024 Files

WINTER 2024
INNOVIEWS

Making Retirement Work

INNOVEST’S LATEST UPDATES AND ARTICLES FROM THOUGHT LEADERS IN THE FIRM

Acquisitions and Consolidations
IN THIS ISSUE

Acquisitions and Consolidations in Consulting
Create Landmines in Consulting Create Landmines
Fiduciary Best Practices
Nonprofit Spotlight: Augustine Institut
Rick Rodgers Frank Cornett, CFP®
How Quantitative Challenges Shape Vice President Vice President
Investment Evaluation: A Comprehensive
Approach to Due Diligence
Employee Spotlight: Gordon Tewell Investment consulting firms are often engaged recent years. Large aggregator advisory firms,
Around the Firm for their independence, expertise, experience, insurance brokerages, and wire houses have
and innovative solutions. However, the been acquiring independent advisory firms at
consulting industry itself is not immune to an unprecedented rate. Some of the acquiring
NEW INSTITUTIONAL CLIENTS change, with acquisition and consolidation firms are backed by private equity investors
Dyson's Inc. becoming increasingly common. While these and the multiples paid to the acquired firms
Newport Center Medical Group mergers can seem like strategic moves on the have been substantial. The primary drivers
surface, they often create a host of challenges behind these consolidation efforts include
City of Lafayette, CO and potential pitfalls, like hidden landmines. This gaining a competitive edge, accessing new
City of Goodyear, AZ warrants more exploration of the complexities markets, acquiring specialized expertise,
Sister Servants of the Eternal Word and consequences of acquisitions and achieving economies of scale, and, most notably,

It is not known whether the listed clients approve or disapprove of consolidations in the consulting world and how monetizing the relationships with the acquired
the services provided. The new clients on page one are listed with
their approval and permission. these maneuvers can create landmines for firms firms’ clients.
and their clients. Monetization is generally achieved through
The investment consulting industry has seen a cross-selling additional products and services.
significant uptick in mergers and acquisitions in Ancillary services include wealth management

WINTER 2024 / 1
PB / WINTER 2024 Continued on Page 2