Convergence Comments on Administration M&A

FromĀ How do you value a Fund Admin Business? on August 6, 2015
With M&A activity in the admin space in full swing, and a number of players understood to be open to acquisitions,admin valuations are becoming a hot topic of conversation.
Relatively few purchases between private companies have had the price tag made public but a number of deals involving listed businesses do shed some light on current market values.
Data from Convergence indicates there are 500 administrators working for 15,000 asset managers with 300 of those firms administering less than $5bn. Given the tight margins and ongoing investment costs of running such propositions it is understandable why so many people are predicting a continued stream of deals in the near future.
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