Avantax Agrees to Acquire Headquarters Advisory Group, LLC, with $1.1 Billion in Client Assets, which would Expand Avantax’s In-house RIA to Northeast
Transaction would enable independent affiliate to monetize its firm, shift administrative tasks to Avantax, and fully focus on growth and superior end-client service
DALLAS – (Aug. 2, 2021) – Avantax℠, a leader in tax-focused financial planning, has agreed to acquire New Jersey-based Headquarters Advisory Group, LLC, with approximately $1.1 billion in total client assets as of June 30, 2021. The transaction, which is expected to close in the third quarter of 2021 subject to customary closing conditions, would expand the nationwide footprint of Avantax’s in-house RIA (registered investment advisor).
After the transaction is closed, Headquarters Advisory Group partners Samuel J. “Skip” Angelo, John J. Crowe, and Michele I. Lee will continue with the Avantax family and become Financial Planning Consultants with Avantax Planning Partners℠. The new relationship will let the team serve existing clients while focusing on growing their client base and relying on Avantax Planning Partners to handle business administration and back-office needs on a go-forward basis. Headquarters Advisory Group has a long history with Avantax and one of its predecessor companies, 1st Global, and has ranked among the Top 5 Avantax affiliated firms.
“We started building this billion-dollar portfolio about 20 years ago, and recently felt we arrived at a crossroads in our succession planning,” said Skip Angelo, Managing Member of Headquarters Advisory Group. “We worked closely with Avantax on a creative solution whereby Headquarters Advisory Group will become part of Avantax. Ultimately, it’s a collaboration of teams, a very clear path for our end-clients with even greater support, and little change; it’s proven to be a valuable path for our firm, our culture and the passions we share.”
The acquisition, upon closing, will enhance the national footprint of Avantax Planning Partners, formerly HK Financial Services, which has a 25-year track record of success. The business also recently established a West Coast presence led by Davin Carey, a longtime Avantax Financial Professional who last year joined Avantax Planning Partners as Regional Vice President, Financial Planning Consultant, based in Southern California.
“In addition to being an incredible growth opportunity, it’s also easy for Headquarters Advisory Group clients who already know Avantax and won’t need to endure repapering or a change in the service experience,” said Louie Rosalez, President of Avantax Planning Partners. “Transitioning to Avantax’s in-house RIA involves very little disruption for the advisors or their clients – it’s a clear process focused on meeting the Financial Professionals’ unique goals with client retention in mind.”
The Headquarters Advisory Group transaction underscores how Avantax’s flexible affiliation models support the company’s commitment to the long-term success of its Financial Professionals.
“Avantax is a unique financial partner that can help you when you’re starting your business, as you grow it, and when the time comes, to monetize it. Our multiple affiliation models are excellent for Financial Professionals’ succession needs and for growth-minded Financial Professionals who want to focus on serving clients more than on the administrative burdens that come with owning a practice,” said Todd Mackay, President of Avantax Wealth Management℠. “We’re excited about this evolving relationship with Skip, John, Michele and the team, and we’re eager to pursue growth opportunities together in New Jersey, New York and throughout the Northeast.”
The Avantax Wealth Management and Avantax Planning Partners brands are part of the wealth management segment of Blucora, Inc. (NASDAQ: BCOR), which had a collective $85 billion in total client assets as of March 31, 2021.
Avantax Wealth Management provides tax-focused wealth management solutions to its nationwide network of financial professionals, tax professionals and CPA firms that operate as independent contractors. Avantax Planning Partners operates as an employee-based RIA and wealth management business that partners with CPA firms in order to provide clients with holistic financial planning and advisory services, and retirement plan solutions.
About Avantax Planning Partners℠
Avantax Planning Partners℠ is a national financial planning and wealth management firm that partners with CPA firms to combine and deliver holistic financial and tax-planning services to their clients. Using the Guidance Planning Strategies planning tool, Avantax Planning Partners visually lays out a long-term plan, considering a wide array of financial decisions and their potential impacts on clients’ financial health. Through this unique and proven approach, Avantax Planning Partners and CPA firms help clients make progress toward their financial goals through strategies such as asset management, estate planning, retirement planning, tax planning, risk management and more.
About Avantax Wealth Management℠
Avantax Wealth Management℠ offers a tax-advantaged approach for comprehensive financial planning. Avantax’s Tax-Smart approach helps clients leverage taxes to create financial growth opportunities. Most financial companies treat taxes as an afterthought, or not at all, even though taxes are one of life’s most complex and costly expenses. Avantax technology, tax and wealth management insights are used by Avantax Financial Professionals to uncover and tailor opportunities across their clients’ financial lifecycles to help enable better long-term outcomes. The wealth management segment of Blucora, Inc. (NASDAQ: BCOR), which includes the Avantax Wealth Management℠ and Avantax Planning Partners℠ brands, had a collective
$85 billion in total client assets as of March 31, 2021. For more information, please visit us at www.avantax.com or at our LinkedIn and Facebook pages.
Blucora, Inc. (NASDAQ: BCOR) is on the forefront of financial technology, a provider of data and technology-driven solutions that empowers people to improve their financial wellness. Blucora operates in two segments including (i) wealth management, through its Avantax Wealth Management and Avantax Planning Partners brands, with a collective $85 billion in total client assets as of March 31, 2021, and (ii) tax software, through its TaxAct business, a market leader in tax software with approximately 3 million consumer and 23,000 professional users in 2020. With integrated tax-focused software and wealth management, Blucora is uniquely positioned to assist our customers in achieving better long-term outcomes via holistic, tax-advantaged solutions. For more information on Blucora, visit www.blucora.com.
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Forward-looking statements can also be identified by words such as “believes,” “estimates,” “should,” “could,” “would,” “plans,” “expects,” “intends,” “anticipates,” “may,” “forecasts,” “future,” “will,” “projects,” “predicts,” “potential,” “continues,” “target,” “outlook” and similar expressions and variations. Actual results may differ significantly from management’s expectations due to various risks and uncertainties including, but not limited to: the impact of the coronavirus pandemic on Blucora’s results of operations and its business, including the impact of the resulting economic and market disruption, the extension of tax filing deadlines and other related relief; Blucora’s ability to effectively implement its future business plans and growth strategy; Blucora’s ability to effectively compete within its industry; Blucora’s ability to attract and retain financial professionals, qualified employees, clients, and customers, as well as its ability to provide strong customer/client service; Blucora’s ability to close, finance, and realize all of the anticipated benefits of acquisitions, as well as its ability to integrate the operations of recently acquired businesses, and the potential impact of such acquisitions on Blucora’s existing indebtedness and leverage; Blucora’s future capital requirements and the availability of financing, if necessary; Blucora’s ability to meet its current and future debt service obligations, including Blucora’s ability to maintain compliance with its debt covenants; downgrade of Blucora’s credit ratings; Blucora’s ability to generate strong performance for its clients and the impact of the financial markets on its clients’ portfolios; the impact of new or changing legislation and regulations (or interpretations thereof) on Blucora’s business, including its ability to successfully address and comply with such legislation and regulations (or interpretations thereof) and increased costs, reductions of revenue, and potential fines, penalties or disgorgement to which Blucora may be subject as a result thereof; risks, burdens, and costs, including fines, penalties or disgorgement, associated with Blucora’s business being subjected to regulatory inquiries, investigations or initiatives; risks associated with legal proceedings, including litigation and regulatory proceedings; Blucora’s ability to manage leadership and employee transitions, including costs and time burdens on management and Blucora’s board of directors related thereto; political and economic conditions and events that directly or indirectly impact the wealth management and tax software industries; Blucora’s ability to respond to rapid technological changes, including its ability to successfully release new products and services or improve upon existing products and services; the compromising of confidentiality, availability or integrity of information, including cyberattacks; Blucora’s expectations concerning the revenues it generates from fees associated with the financial products that it distributes; risks related to goodwill and other intangible asset impairment; Blucora’s ability to develop, establish, and maintain strong brands; risks associated with the use and implementation of information technology and the effect of security breaches, computer viruses, and computer hacking attacks; Blucora’s ability to comply with laws and regulations regarding privacy and protection of user data; Blucora’s ability to maintain its relationships with third-party partners, providers, suppliers, vendors, distributors, contractors, financial institutions, industry associations, and licensing partners, and its expectations regarding and reliance on the products, tools, platforms, systems, and services provided by these third parties; Blucora’s beliefs and expectations regarding the seasonality of its business; Blucora’s assessments and estimates that determine its effective tax rate; and Blucora’s ability to protect our intellectual property and the impact of any claim that it has infringed on the intellectual property rights of others.
In addition, there are risks associated with the acquisition of Headquarters Advisory Group, such as: our ability to consummate the acquisition; our ability and Headquarters Advisory Group’s ability to fulfill the conditions to the closing of the acquisition on a timely basis or at all; our ability to retain our key employees and key employees of Headquarters Advisory Group following the acquisition, as well as the other risks and factors included in Blucora’s filings with the Securities and Exchange Commission.
A more detailed description of factors that could affect actual results is included in Blucora’s filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Blucora undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date hereof, except as may be required by law.