Recent Deal Making Raises Question: What is Wells Fargo Advisors Worth?

Posted on September 30th, 2021 at 12:32 PM
Recent Deal Making Raises Question: What is Wells Fargo Advisors Worth?

From the Desk of Jim Eccleston at Eccleston Law:

Deal-making in the wealth management industry continued this week as The Tiedemann Group and Alvarium Investments have agreed to merge with Cartesian Growth Corp. to create a new firm. 

However, the company will be listed on Nasdaq as Cartesian due to its status as a special purpose acquisition company (SPAC). The SPAC, which has been tabbed as a faster and cheaper alternative to the IPO since the outset of COVID-19, will enable the newly created firm to oversee $54 billion in client assets. 

The agreement begs the question of how much Wells Fargo Advisors could potentially be worth on the market. One must consider the currently heightened demand for wealth manages as well as Sen. Elizabeth Warren’s recent proposal that the Federal Reserve break up Wells Fargo. 

Charlie Scharf, Wells Fargo’s new CEO, has already initiated a reorganization of the firm as the company sold its asset management business earlier this year for $2.1 billion. According to bankers and competing executives, a potential sale of Wells Fargo Advisors should generate ample demand on the market from private equity firms and other broker-dealers. Wells Fargo employs 12,819 advisors who earn average annual revenue of $1.08 million, which equates to $13.8 billion in annual revenue for the wealth management business. Wells Fargo Advisors earns annual pre-tax profits of $2.76 billion if 20% margins are assumed. Add on a valuation of eight times EBITDA, which provides that Wells Fargo Advisors may be worth $22.1 billion or more. 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, wells fargo

Return to Archive



We just wanted to say thanks for your work in helping us get back some of the money we lost. We are not by any means rich, but we have saved some money and we have done so through a tight-fisted approach to most everything we do. So losing a significant chunk of money hurt…especially at a time when everyone else was growing their accounts. We really appreciate the work you did.

Allan and Adele


September 29, 2023
Traders Engage in Boom-or-Bust Options in Stock Market

The stock options market is experiencing a surge in activity, as many individual investors are eagerly engaging in trades that expire within hours or days to take advantage of the volatile market swings.

September 28, 2023
Former LPL Affiliate Compliance Chief Suspended by FINRA for Unauthorized $1 Million Transfer

The Financial Industry Regulatory Authority (FINRA) fined and suspended Jeffrey K. Kirkpatrick, a former chief compliance officer at a registered investment advisor previously affiliated with LPL.

September 27, 2023
Former Creative Planning Staff File Lawsuit Challenging Non-Compete Agreements

Four former employees of Creative Planning have filed a lawsuit, alleging that their non-compete agreements with the firm unlawfully restrict their ability to work in the industry.