M&A for RIAs on the wane, study says

This year through April, just seven deals for RIAs were struck, in contrast to last year, when there were 58 deals.
JUN 05, 2008
The mergers and acquisitions market for registered investment advisers is seeing a short-term slowdown this year, but the appetite for deals will remain strong in the long run. That is one of the conclusions of an updated study presented by Pershing LLC at its annual meeting, Insite, in Hollywood, Fla. This year through April, just seven deals for RIAs were struck. That is in contrast to last year, when 58 deals were consummated, according to the biannual study, “Real Deals 2008: Defined Information on Mergers and Acquisitions for Advisers.” There are a variety of reasons for the current dearth of deals, said Philip Palaveev, president of Fusion Advisor Network of Elmsford, N.Y., who presented the study here yesterday. "In some cases, capital has dried up," he said. Another factor was that "some strategic players have become distracted" by the general turmoil in the market, Mr. Palaveev said. Valuations for firms were holding steady, he said, but prices for "premium" firms are likely to go up because of scarcity. Last year was a banner year for mergers and acquisitions for RIAs. The number of deals increased 53% compared with 2006 and was double the number in 2003, according to the study. Pershing. of Jersey City, N.J., last completed the Real Deals study in 2006.

Latest News

Advisor moves: Atlas tops $1B as Wells Fargo, UBS add bank veterans
Advisor moves: Atlas tops $1B as Wells Fargo, UBS add bank veterans

Wells Fargo adds two bank-channel recruits, UBS lands a JPMorgan Chase veteran, and a multi-family office lifts Atlas past $1B

Advisor mom’s son used her password to log into clients’ accounts, sell deal with conflicts, according to Washington state
Advisor mom’s son used her password to log into clients’ accounts, sell deal with conflicts, according to Washington state

“The state comes down on you in years when you make 40% returns for clients,” said Bill Swayne, the advisor and son of Candace Swayne.

Osaic in talks with Anthropic as AI reshapes advisor workforce
Osaic in talks with Anthropic as AI reshapes advisor workforce

The Independent broker-dealer giant has had “active conversations” with the Claude maker, which is days away from its expected IPO

The retirement milestone advisors aren't tracking
The retirement milestone advisors aren't tracking

For Gen X clients entering life after work, answering the financial question isn't enough to solve the entire retirement equation.

Wealthtech firms target stock pay, pensions and heirs for advisors
Wealthtech firms target stock pay, pensions and heirs for advisors

Tools from Grantd, Income Lab and Healthspan Wealth aim to keep RIAs involved in clients’ biggest money decisions

SPONSORED Best Practices for Engaging Women Around Alternatives

Growing wealth, evolving priorities, and untapped opportunities are reshaping how women approach long-term investing.

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.