Retiring Advisors Drive $2.5 Trillion RIA M&A Boom as 54% of Firms Seek Deals
Updated
Updated · The Daily Upside · Jun 16
Retiring Advisors Drive $2.5 Trillion RIA M&A Boom as 54% of Firms Seek Deals
1 articles · Updated · The Daily Upside · Jun 16
Summary
$2.5 trillion in RIA acquisition opportunities has emerged as advisor retirements and succession problems push more firms toward sales, with Cerulli saying 54% of RIAs are now seeking an acquisition.
26,000 acquisitions are projected over the next decade because internal succession is difficult at larger asset levels and high valuations make outside buyers more attractive for owners and staff.
2% of RIAs control more than half of industry assets, giving firms with more than $5 billion under management the strongest position to keep consolidating.
Recent deal data shows activity across the size spectrum: Corient bought 20 firms averaging $1.4 billion in assets, while Wealth Partners Capital Group acquired 85 averaging about $245 million.
Smaller RIAs still have room to compete, but Cerulli says many will need to specialize or differentiate locally as consolidation accelerates.