M&A in the Asset Management Space

Using Institutional Data to Evaluate Opportunities

This whitepaper highlights the disruption and evolution of the asset management industry and the unique ways eVestment data is being used by firms seeking to build their brands through a merger or an acquisition.

Some ways eVestment data can help identify and assess M&A targets include:

  •  Retail and institutional investors have different time horizons and behave differently, so knowing a target firm’s retail/institutional AUM ratio, which eVestment tracks, can impact long term projections of growth and flows, and thus financials of a deal.
  • Client retention can be a key driver of long-term value in an M&A deal as well. A target firm may provide information on its client retention during the M&A process, but that information is of limited value in a vacuum. By comparing the target firm’s client retention to peer firms with eVestment data, the potential acquirer can better understand if the firm they are evaluating has higher or lower client retention compared to similar firms.
  • A firm looking at acquisition targets may be looking to broaden its product breadth, geographic reach and key professional expertise. eVestment tracks information like firm investment strategies, office locations and key professionals’ background, giving an acquirer opportunity to better understand how target firms might complement their own expertise, personnel and reach.

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