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For all the attention on M&A activity in the RIA space, it is sobering to know that few RIAs actually participate. And of those that do, only a fraction ever close a deal.
To help firms succeed on this front, I sat down with Mark Tibergien, former CEO of Pershing Advisor Solutions, and Brad Armstrong, a partner at private equity firm Lovell Minnick Partners, to discuss how RIAs can ready themselves for M&A and learn how to originate opportunities. What follows is a summary of that discussion.
“Maturing Profession” Supports Growth in RIA M&A
The resilience of the RIA M&A market was evident in 2020. Despite coronavirus lockdowns, deal flow increased slightly from 203 deals in 2019 to 205 deals last year, according to M&A consultancy Echelon Partners. And this exuberance continues. In Q1 2021, a record-breaking 76 deals were inked as a prelude, Echelon says, to a fifth straight year of higher RIA deal flow.