Sequoia Financial Group is buying RAV Financial, increasing the registered investment advisory firm's assets to about $3 billion.
RAV Financial, which provides financial planning to high-net-worth individuals, has about $400 million of assets under advisement, according to Bob Valente, the firm's CEO. Mr. Valente, who will be 69 on Thursday, said he agreed to the deal as part of his succession plan for the firm he created in 1982.
With many owners of wealth-management firms approaching retirement, RIAs are
considering mergers as a way to cash out.
The deal with RAV Financial is the result of a two-year conversation, said Tom Haught, the 51 year-old president of Sequoia, which he founded 25 years ago in Ohio. He said both firms value comprehensive financial planning that comes from a “deep level of engagement” with clients.
For Sequoia, the deal also means growth. The firm is gaining assets and an office in Beachwood, Ohio, as well as RAV's expertise in planning for major life event changes, such as long-term care or a divorce, according to Mr. Haught, who said the purchase is expected to be completed in the third quarter.
“The client is looking for someone to trust, someone for guidance,” said Mr. Valente, especially in times of transition, whether that be related to retirement, marital status or health care.
Sequoia, whose specialty is working with private business owners such as physicians, attorneys and architects, has offices in Akron, Ohio, and Tampa, Fla., according to Mr. Haught. It also has an office in St. Clair Shores, Mich., as a result of its acquisition of GHD Wealth Management in March. The firm typically works with people who have $1 million to $500 million of assets.
Mr. Valente said he'll be focused on making sure RAV Financial clients feel comfortable with the merger and the continuity plan that's been set in motion at Sequoia.
