Registered investment advisory firm consolidator Hightower acquired a tax and advisory firm that will become a subsidiary service available to its hundreds of financial advisors.
The parties didn't disclose the terms of the deal for Chicago-based Hightower's investment into suburban Philadelphia-based GMS Surgent, but the transaction involved cash and equity, according to the firm.
"We are thrilled to welcome GMS Surgent into the Hightower community, enabling us to provide advisors with a vetted resource to deliver comprehensive tax services to clients via a seamless experience," Hightower CEO Bob Oros said in a statement.
As a result of the deal, Hightower advisors can offer in-house tax management services to their clients, expanding the range they currently offer. Other services available to advisors from Hightower's corporate office include estate planning, insurance and trust resources.
"Expansion of services is the most significant trend in wealth management today," said John Langston, a managing partner at investment banking and M&A advisory firm Republic Capital Group. "It reinforces the intersection between wealth management and accounting firms. In particular, I think the trend is wealth management firms acquiring CPA firms which is meaningfully different than vice versa."
While
GMS Surgent, led by Managing Partners Brian Gallagher, Jack Surgent, and Lauren Adamski, has grown to a team of approximately 30 employees since its founding in 1992.
"As we work closely with Hightower, we are excited to have the opportunity to enhance the client experience with our knowledge of tax planning and business consulting," Gallagher said in a statement. Surgent added, "We were impressed with Hightower's unwavering focus on the client experience, and we feel we can contribute to the broad range of service Hightower can offer its clients."
Under private equity backer
The GMS Surgent transaction closed on June 30, with Berkshire Global Advisors serving as the exclusive financial advisor to GMS Surgent.
