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Taking the Extra Step: Why Asset Managers Must Look Beyond Scale in M&As
It's time to think beyond just growing bigger, says financial guru Hugh Elwes in hisApril 2025 commentary
Hugh Elwes 🕒 April 22, 2025
If you're an asset manager kicking off M&A deals, you might think that the ultimate goal is all about scaling up. But according to financial expert Hugh Elwes, that's just half the battle. Here's why you need to rethink your approach.
Size Ain't Everything
Just aiming for growth in terms of size may get you shortsighted results. Elwes emphasizes that you gotta create a unique value proposition to stand out from the crowd, something that won't just give you a larger asset base but something truly competitive and sustainable.
Complementary Skills and Synergies
A successful M&A involves more than just getting bigger. It's about blending complementary expertise, modern tech, and client relationships to create powerful synergies that boost performance, rather than just piling up assets.
Innovation for Client Satisfaction
Don't forget that M&A deals should empower you to innovate, be it fresh product offerings or improved services, to meet your clients' ever-evolving demands. Scale, alone, can't guarantee client satisfaction.
Operational Efficiency and Strategic Growth
Yes, scale can bring cost advantages. Yet, your focus shall be on strengthening operational excellence, agility, and strategic growth in new markets or segments. Remember, it's not just about controlling more assets, it's about leveraging them effectively.
The Solid Business Model
Whether you're aiming for deals that make your business stronger, more adaptable, or resilient, it's important to ensure that your moves are rooted in strategicacumen rather than short-term gains.
In a nutshell, Elwes advises that asset managers should focus on strategic value creation, capability enhancement, and innovation, in their M&A pursuits, over mere expansion of scale, to remain competitive and agile in a rapidly-changing investment world. By following this approach, asset managers can withstand the headwinds and thrive in the ever-evolving financial market. 🚀
As set out by financial expert Hugh Elwes, asset managers should strive for more than just expansive market capitalization through M&As. Instead, complementary skills, synergies, innovative product offerings, and improved services are essential for long-term success in an evolving DeFi landscape within the finance industry. Agility, strategic growth, and operational excellence are key components to leverage effectively and strengthen business resilience in the competitive and rapidly-changing investing universe.
