SAN DIEGO, April 5, 2017 /PRNewswire/ -- Granite Springs Asset Management, LLC, a Registered Investment Advisor, has finalized its purchase of New Jersey based Sunnymeath Asset Management, Inc., a financial firm with $115 million in AUM.
The process began as COO Ben Seelaus perused firms listed for sell or merge on SuccessionLink.com, an online marketplace for advisors who want to buy, sell or merge their practices. According to Seelaus, the anonymity the Succession Link platform provided during the initial stage of communication was a big plus, especially for James P. O'Mealia, founder and President of Sunnymeath, who had not yet approached his team on the subject of an acquisition. "However, enough information was provided to us on the platform and through the Succession Link messaging system to encourage both of us to take the next step," says Seelaus.
Hear excerpts from the interview between Phil Flakes, Co-Founder at Succession Link and Ben Seelaus, COO at Granite Springs Asset Management, LLC.
A first acquisition for the firm, Seelaus says he was surprised they didn't hit more hurdles during the process. He attributes it to the fact that they listened carefully to the seller's "hotspots," and made sure to structure the deal to make it a win/win for both parties.
"We spoke in great length about what was important to him and what he was trying to achieve before we put a structure in place," says Seelaus. The final deal provided an upfront payout as well as 2-10 year trailers on AUM, determined by the date the assets came in, and O'Mealia and several of his key employees would continue to work with the firm.
The firm was valued based on a multiple of the revenues that will be earned the first year they work together. This provides an incentive for both parties to increase assets and to successfully integrate the two businesses. "We were pleased that we were able to structure in key pressure points for [O'Mealia] and still have it work out well for us," says Seelaus.
While the business agreement, numbers and terms of the deal were in place within the first year, the legal and financial details [lawyers and bankers] took another six months. "It took nearly 18 months from the initial conversation to closing the deal. It's never a three-month process," he stresses.
As for the next steps, the custodians have been made aware of the additional services the firm now provides, and the Seelaus team is working to ensure the correct operating procedures are in place at all the offices. In addition, the rebranding will take place over a one-year period. "We stretched it out so it would be easier on the seller who is a single proprietor. Selling a practice can be emotionally difficult when you've put your heart and soul into it for so many years," says Seelaus.
Because Sunnymeath is mostly an equity management firm and Granite Springs is primarily a fixed-income management firm, the combination creates some nice synergy. "We now have a full wallet of products to offer our clients and it will make us more attractive to financial advisors who want to join our team," he says.
Seelaus has, again, started browsing Succession Link's list of firms for buy opportunities. He says having experienced an acquisition will allow them to speed up the process next time, but it can still take some time to find the right firm and to agree upon the terms of the deal.
About R. Seelaus & Co., Inc.
R. Seelaus & Company, Inc., the parent company of Granite Springs Asset Management, is an employee-owned investment firm located in Summit, NJ. Established by Richard Seelaus in 1984, the firm was initially a municipal bond dealer conducting business with the major trust banks of New York and Chicago. In the three decades since opening its doors, the firm has grown into a full-service financial firm meeting the planning and investment needs of high-net-worth individuals and businesses and today is home to more than 60 financial advisors, traders, and analysts all working together to trade profitably for its clients every day. R. Seelaus & Co is a nationally certified Women's Business Enterprise.
About Succession Link
Succession Link is a premier networking and communication platform offering financial advisors interested in buying, selling, or merging their practices a place to seamlessly leverage leading-edge resources, data, and knowledge for successful business expansion and more.
Contact: Evee Walker, [email protected], 877-397-0430
SOURCE Succession Link