Regulatory Update: RIA M&A 2024 – Navigating the Changing Landscape

The registered investment advisor (RIA) mergers and acquisitions market is undergoing a significant transformation. After a decade of continued growth, transaction volumes declined slightly in 2023. However, industry experts predict a resurgence in the coming years, driven by a confluence of factors changing the landscape – including a number of regulatory hurdles. Understanding these trends is crucial for any RIA owner or leader considering the future of their company.

One of the most important factors of this change is the upcoming succession crisis. Many RIA founders, especially those who built their companies during the bull market of recent decades, lack a well-defined succession plan. While this is partly due to the natural human tendency to procrastinate, it is also a consequence of skyrocketing RIA valuations. With valuations reaching all-time highs, it is becoming increasingly difficult for the next generation of advisors to afford to buy existing companies.