Creative Planning adds RIA with 'deep' tax roots in latest M&A deal

A registered investment advisory firm serving more than 300 clients at the intersection of tax and wealth management services folded itself into Creative Planning.

Minneapolis-based CTB Financial Services, which lists three financial advisors and six other employees managing $218.3 million in assets under management in its latest Form ADV filing with the Securities and Exchange Commission, became the latest incoming RIA to add to private equity-backed Creative Planning's size and services. 

In June, Overland Park, Kansas-based Creative launched a new unit called Creative Planning for Business after acquiring another Minnesota Twin Cities-area firm. Last month, Creative also added Goldman Sachs Advisor Solutions to its group of RIA custodians alongside Charles Schwab, TD Ameritrade Clearing, Fidelity and Pershing.

"We are excited to welcome CTB Financial Services into the Creative Planning family," Creative CEO Peter Mallouk said in a statement. "Having earned the reputation of being the family CFO among their clients, their proven proficiency in wealth management and tax planning aligns with our mission of offering holistic, client-centric financial solutions. This strategic acquisition underscores our commitment to delivering exceptional value and comprehensive support to our clients."

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Creative spans more than $210 billion in client assets, and the incoming firm started more than four decades ago as a certified public accounting practice. In 2002, CTB Financial launched an RIA. The setup reflects how the firm "was founded with deep roots in tax planning" but has "been improving the lives of our clients by fusing their taxes with their investments" for more than 20 years, according to CTB Financial's website.  

"Coming together with Creative Planning is an exciting opportunity," CTB Financial senior advisor Jonathan Liang, who is now a partner with Creative Planning, said in a statement. "By consolidating taxes, retirement, spending and investments within a single framework, we've seen how blended financial management can yield superior results. Now, we integrate these achievements with the extensive resources of Creative Planning, amplifying our capacity to bring exceptional value to our clients."

Large and often private equity-financed firms like Creative are maintaining solid deal flows even as the total volume of M&A transactions across the industry has fallen. The number dropped 40% year over year to 65 in the second quarter, which is the smallest amount since the same period in 2021, according to investment bank and consulting firm Echelon Partners.

"This is partially driven by macroeconomic uncertainty affecting all industries, but is also largely due to the seasonality in wealth management M&A activity," the firm's latest quarterly M&A report said. "Buyers and sellers tend to close more deals at the beginning and end of the year which leads to a seasonality in deal announcements."