DeVoe & Company’s latest RIA M&A report finds that 2024 deal volume is running slightly ahead of 2023 totals through the third quarter, reflecting a steady demand for strategic growth despite ongoing economic challenges, and putting the industry on pace to exceed 240 deals for the full year.
The boutique wealth management investment bank’s new RIA M&A Q3 Deal Book tallied 65 transactions in the third quarter, even with the same period a year ago, and putting 2024 on pace for more than 240 deals. That compares to 251 M&A transactions in 2023 and the high-water mark of 264 in 2022. It would also put 2024 on roughly level terms with the 241 transactions in 2021.
The report highlights a notable trend of larger sellers re-entering the market, particularly those managing over $1B in assets. This segment has driven a significant share of transaction volume, as these firms are increasingly seen as attractive targets for consolidators looking to enhance their portfolios.
The relaxation of interest rates is also expected to further stimulate M&A activity, making acquisitions more affordable for buyers, according to the report. Lower borrowing costs are likely to encourage both consolidators and independent RIAs to pursue more aggressive acquisition strategies as they capitalize on favorable market conditions.
Access the report here.
