Four Tips for RIAs Looking to be Acquired

Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.

RIAs have entered a time of favorable growth – and they’re embracing the highs that come with it.

According to Echelon Partners, the merger and acquisitions consulting firm, the average RIA tripled its revenues between 2010 and 2017. Although this growth is strong, firms are facing intensified pressure to achieve even greater scale with long-term endurance. The result? Many are turning toward mergers or acquisition strategies to reach those goals.

The increased flow of outside capital makes it easier for firms to secure financing and hop into deals. Those opportunities are numerous and tempting, but partner break-ups, key client losses and other pitfalls can be costly.