M&A roundup: Avantax and Marsico Financial expand

Avantax, a tax-focused financial planning and wealth management firm that’s part of Cetera Holdings, has acquired the assets of Sweeney Kovar LLP, a wealth management and accounting firm that’s already affiliated with Avantax.

Sweeney Kovar was founded in 1984 by Kevin Sweeney and Joseph Kovar. Their firm’s wealth management business had approximately $180 million in assets under management as of Sept. 30, 2024, while the tax and accounting business processed 2,000 tax returns annually. Kovar and the firm’s staff of 12 became Avantax employees as part of the deal, and are continuing to operate from their current offices in Danville, California, east of San Francisco. Sweeney continues to work with the wealth management business, supported by his wealth management assistant who joined Avantax as an employee.

“We’re proud of the business we built, but we wanted succession to be about more than just our future retirement,” Sweeney said in a statement. “Our main goal was consistency for our clients, many of whom have been with us for 35 years, and our staff so selling to Avantax was the right choice. Choosing anyone but Avantax could mean a drop-off in service for our clients, and changes for our team that probably wouldn’t be a good fit. With Avantax, it’s the same level of client service and the same culture for our staff — it’s a real blessing.”

The Sweeney Kovar founders approached their succession plan with comprehensive tax-focused financial planning services in mind.

“Adding wealth management to our practice many years ago made us better CPAs because we go beyond the tax returns, we know more about the client’s family and what’s important to them so we can plan for their future and help them get in the right place to achieve their goals and objectives,” Kovar stated. “We looked at other firms, but sticking with Avantax was better all the way around.”

“Joe and Kevin sought out our Corporate Development team at our National Conference to discuss creating a succession option that checked all their boxes while keeping their truly outstanding business within the Avantax Community,” Watts said. “I know Joe and Kevin would agree that it’s best when advisors start thinking about succession planning many years before they want to retire so the process can happen thoughtfully, with every detail covered, enabling us to collectively create the best possible outcome for the advisors, their teams and their clients.”

Last year, Avantax acquired GA Investment Management, a wealth management firm based in Seven Fields, Pennsylvania, with satellite offices in Pittsburgh, and Houston-based Integrated Tax & Wealth Strategies, one of Avantax’s largest affiliates, with $760 million in total client assets. The financial planning firm Cetera acquired Avantax for approximately $1.2 billion in 2023. Avantax was formerly known as Blucora, which rebranded as Avantax after Blucora sold off its TaxAct tax preparation software to a private equity firm in 2022 to focus instead on its Avantax financial planning and wealth management business. Blucora created Avantax Wealth Management in 2019 after acquiring HD Vest and 1st Global, two financial planning firms that partnered with CPA firms around the country to offer wealth management services, and combining them under the Avantax name.