The Rise of Super-sized Firms

Consolidation in the independent space is turning large firms with $1 billion in assets into $10 billion enterprises — putting pressure on small and midsize firms who do not envision selling.

While $1 billion in assets used to be enough to classify an independent firm as a so-called super-ensemble, firms in that category now have at least $10 billion in assets and bring in an average of $16 million in revenue, according to InvestmentNews' 2014 Financial Performance Study of Advisory Firms. There were 16 super-ensembles in the 2014 study of more than 300 firms, and 44% expected to make another purchase or absorb another firm.

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