MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
|
|
MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Friday, July 19, 2002 Buying on the Cheap? Mutuals.com has decided it needs to grow by acquisition, Rick Sapio, ceo of the firm, told the MutualFundWire.com. "It is impossible to get assets any other way," explained the firm's founder in an interview. "We are looking for any firm that derives at least 60 percent of its revenues from asset-based fees. Our range is quite broad. Our targets could include mutual fund firms, hedge funds, private money managers, almost any kind of firm in financial services," Sapio reported. "In order to grow revenue, you can two one or two things. You can advertise. That is extremely cost prohibitive in this environment. You could be giving away gold bars, and people would simply not be opening new accounts. Or you can grow through acquisitions. That is what we decided to do," he explained. "Through these acquisitions," the executive contended, "we can market our current services to our new clients. In this way, we can get greater market share from each client and increase our penetration." "For 15 years, companies like Schwab have been growing through marketing. And that model just isn't working any more. We have to try a different approach," Sapio concluded. Mutuals.com is in the early stages of examining potential targets. Sapio expects the first acquisition to be completed before the end of the calendar year. Printed from: MFWire.com/story.asp?s=3130 Copyright 2002, InvestmentWires, Inc. All Rights Reserved |