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Avantax Acquires Assets of Longtime Affiliate Sweeney Kovar LLP with Approximately $180 Million in Assets Under Administration

1. Avantax acquires Sweeney Kovar, enhancing its wealth management services. 2. Sweeney Kovar managed $180 million in assets, ensuring client service continuity. 3. Succession planning was proactive, focusing on long-term client and staff needs. 4. The acquisition retains all employees, preserving company culture and client relationships. 5. Avantax aims to minimize client tax burdens through specialized planning services.

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FAQ

Why Bullish?

The acquisition strengthens Avantax's market position and service capabilities, which historicallyImproves valuation.

How important is it?

Strategic acquisitions like this can significantly impact future earnings and market perception.

Why Long Term?

The positive impacts on client retention and growth will unfold over time, unlike immediate market fluctuations.

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AVTACETX
DALLAS--(BUSINESS WIRE)--Avantax® Inc. (Avantax), a unique community within Cetera Holdings and a leader in tax-focused financial planning and wealth management, has acquired the assets of Sweeney Kovar, LLP, a wealth management and accounting firm affiliated with Avantax for nearly 25 years. Founded in 1984 by veteran financial professionals Kevin M. Sweeney, CPA, PFS, and Joseph C. Kovar, CPA, PFS, the firm’s wealth management business had approximately $180 million in assets under administration 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 transaction, and continue operating from their current office in Danville, Calif., 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. After evaluating succession options, the partners decided to sell their firm’s assets to Avantax because they saw it as the most seamless succession option that also helped ensure consistency of service for their clients while paving positive career paths for their employees. “We’re proud of the business we built, but we wanted succession to be about more than just our future retirement. 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,” Kevin Sweeney said. “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.” As longtime tax/accounting professionals and financial advisors, 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,” Joe Kovar said. “We looked at other firms, but sticking with Avantax was better all the way around. From corporate development to due diligence and the integration team, the Avantax people have been wonderful. They were amenable to what we were trying to accomplish, and from our standpoint, the process went as well as we could have expected.” Avantax Wealth Management President Andy Watts credited Sweeney and Kovar with proactively engaging Avantax in succession planning, which began as a simple conversation at an Avantax National Conference. “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.” Tax and financial professionals can learn more about Avantax by clicking here. *Value approximated based on asset-holding details provided to Avantax. About Avantax® Avantax, a unique community within Cetera Holdings, delivers tax-intelligent wealth management solutions for financial professionals, tax professionals and CPA firms, supporting its goal of minimizing clients’ tax burdens through comprehensive tax-intelligent financial planning. Avantax has two distinct, but related, models within its business: the independent Financial Professional model and the employee-based model. Avantax refers to its independent Financial Professional model as Avantax Wealth Management®. Avantax Wealth Management (AWM) works with a nationwide network of Financial Professionals operating as independent contractors and offers its services through its registered broker-dealer, Avantax Investment Services, Inc., Member FINRA, SIPC, registered investment advisor (RIA), Avantax Advisory Services, Inc., and insurance agency subsidiaries. We refer to our employee-based model as Avantax Planning Partners℠. Avantax Planning Partners offers services through its RIA, insurance agency, and affiliated broker-dealer, Avantax Investment Services, Inc., and partners with CPA firms to provide their consumer and small-business clients with holistic financial planning and advisory services. Avantax is a wholly owned subsidiary of Cetera Holdings, which refers to Aretec Group, Inc. For additional information, please visit www.avantax.com.

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