On Tuesday, tax-centric dealer/vendor Avantax introduced that in 2022, the agency recorded newly recruited assets of approximately $1.7 billion, a rise of roughly 79% over 2021.
Avantax ended the third quarter of 2022 with a complete of three,347 monetary advisors, about flat from the earlier quarter and down about 182 from a 12 months earlier than.
Through the fourth quarter of 2022, 66 impartial monetary professionals affiliated with Avantax, in response to the corporate.
Avantax additionally “continued efficiently recruiting accounting corporations” to its employee-based mannequin, which they confer with as Avantax Planning Companions.
“They’re becoming a member of Avantax to be a part of our neighborhood of like-minded, growth-oriented friends who collaborate and assist elevate one another as they develop,” mentioned Tim Stewart, vice chairman and head of enterprise improvement for Avantax, within the announcement.
Angie Herbers, founder and chief govt of Herbers & Firm, mentioned for the previous 5 years, the highest natural progress technique for advisory corporations is the addition of tax planning, “particularly for customers who’re nearing retirement.”
“The vital and rising scarcity of the CPAs … is a chance for advisory corporations,” mentioned Herbers. “Whereas tax planning can’t substitute tax recommendation … corporations who had carried out tax planning companies dominated 2022 progress throughout the trade.”
In September 2019, Blucora, the mum or dad firm of tax-focused impartial dealer/sellers HD Vest Monetary Companies and 1st International, combined the two b/ds into Avantax Wealth Administration.
In June 2021, Blucora, laid out plans to carry collectively its tax software program and wealth administration companies.
In November 2022, Blucora announced they would rebrand as Avantax, and develop into a pure-play wealth administration agency. This modification got here as the corporate shed its TaxAct enterprise. An affiliate of Cinven, a worldwide non-public fairness agency, agreed to purchase TaxAct for $720 million in money.
Ancora Holdings, an funding advisory agency and Blucora shareholder that waged a public proxy battle with the corporate for board seats, had been calling on Blucora to sell TaxAct since 2021.
