OneDigital announced the acquisition of Resources Investment Advisors on February 4 and is “expanding into the retirement plan market with one of the first major deal announcements of the year,” as described by InvestmentNews.
The deal, which includes 13 advisor practices in addition to Resources, will allow the company to offer retirement plan consulting and wealth together with healthcare benefits.
InvestmentNews spoke with OneDigital's Chief Growth Officer Mike Sullivan as well as Resources President Vince Morris to discuss the rationale of this move. In the article, “OneDigital Buys $45 billion RIA Resources,” Mike describes the recent Resources deal as “the perfect mix of leadership and infrastructure.
Employers are finding it increasingly competitive to attract and retain talent. They are looking for vitality in a workforce. Physical and financial well-being is so important for most of our clients. We were really diligent in this for the better part of 18 months. The advisers that are coming on board are very much in the middle market. Working with plans that have roughly 50 to 5,000 participants–similar to the client size served by OneDigital means there’s very nice symmetry.
— Mike Sullivan, Chief Growth Officer and Co-Founder, OneDigital
Resources started aggregating through an affiliation model. We’ve been really successful. We had three years of 50%-plus growth in that space. Under the OneDigital brand, we’ll be able to have both strategies deployed, where if you want to come to a competitive RIA in the wealth and retirement space, we can do that through an acquisition model or an affiliation model. At some point, all the strategic buyers go away. The multiples are high and great today, but the landscape is changing. It had to be the Goldilocks story. This company was just the right size, with just the right vision.
— Vince Morris, President, Resources Investment Advisors
Read the full InvestementNews article here.
Additional Coverage on InvestmentNews: Retirement Plan Adviser M&A Stays Hot with OneDigital Deal for Resources.