MutualFundWire.com: Asset Managers, Wait on M&A
MutualFundWire.com
   The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
Thursday, April 22, 2010

Asset Managers, Wait on M&A


In a new report, research company Cerulli warns asset managers that mergers and acquisitions are not always the best way to increase scale and capital.

To avoid challenges like incompatible cultures and marketing systems, clash of management styles, and negative perceptions of the merger by the marketplace, Cerulli points managers to other methods like special financing and private equity.

Cerulli is pushing investment managers to maintain full control of their companies, rather than give up any control through M&A. For example, to increase distribution, Cerulli recommends third-party marketers which can move sales into new channels at a low cost.

“M&A is not the right fit for every manager. Firms should assess their options for what they are tying to achieve and the potential pitfalls of a merger before they make a move,” Cerulli's team cautioned in the report.


Printed from: MFWire.com/story.asp?s=31996

Copyright 2010, InvestmentWires, Inc.
All Rights Reserved
Back to Top