Conversations with attorneys and advisors have increasingly touched on the evolving landscape for registered investment advisors (RIAs), particularly as it relates to succession planning and transaction activity. With continued consolidation in the wealth management space and persistent deal activity, questions around valuation, control, and transition planning continue to arise in advisory and litigation contexts.
My colleague Brooks K. Hamner recently examined what current RIA M&A headlines reveal about valuation dynamics and succession trends. The piece was originally published on Mercer Capital’s RIA Valuation Insights Blog and offers a timely perspective on how market activity is shaping expectations for owners and stakeholders.
Given the relevance of these issues in family law matters where closely held advisory firms are involved, we feature the piece in this month’s Family Law Valuation and Forensic Insights.
- Karolina Calhoun, CPA, ABV, CFF
RIA M&A headlines like Rise Growth Partners’ minority investment in Cyndeo and NewEdge’s acquisition of Stonegate Investment Group continue to arrive at a steady pace. Minority investments. Platform acquisitions. Founder recapitalizations. Internal succession capital raises. The volume alone tells a story, but the structure of these transactions tells an even more important one.
For RIA owners considering their long-term succession options, today’s deal environment provides valuable signals about how buyers assess value, how risk is allocated, and what makes a firm truly attractive in a competitive market. Looking past headline valuation multiples, several themes emerge that are directly relevant to firm owners evaluating their strategic options.
Below are some of the key lessons embedded in recent RIA M&A activity. ...