PORTLAND, Ore. (Feb 11. 2020) — Succession Resource Group, Inc. (SRG) is publishing its ten-year retrospective look at the state of the mergers and acquisitions for independent RIAs and advisors, recapping deal data, trends, and predictions for the coming decade. SRG’s data for this period draws upon more than $250 million in third-party transactions and over $20 billion in total assets under management (AUM) transferred1.
From 2010 to 2019, the investment advisor industry experienced several major events that impacted the M&A market for RIAs:
According to David Grau Jr., President of SRG, deal volume in the last ten years grew steadily and is expected to continue into the next decade, driven by: 1) low interest rates, pressure on fees; 2) the current bull market inflating AUM and therefore values of RIA practices; 3) the continued graying of the industry (the average advisor is 55 years old2; 4) the declining total number of advisors over the last decade (CAGR of -0.7%3); and 5) the industry’s complete lack of succession planning (73%4 of advisors lack a succession plan).
From 2020 to 2029, Grau predicts:
On February 20, 2020, SRG will be hosting a panel discussion with David DeVoe of DeVoe & Co. and Michael Kitces looking back at the last decade and making predictions for the coming decade of deals. For an exclusive look at 2019 M&A deal data, view the recording of SRG’s annual webinar here.
1. Deal data is comprised of independent Registered Investment Advisors and securities professionals with less than $1 billion in AUM from SRGs Internal Database
2. D. Power Press Release, July 9, 2019
3. The Cerulli Report U.S. Intermediary Distribution 2019
4. FPA and Janus Henderson Investors, “The Succession Challenge 2018”
About Succession Resource Group
Succession Resource Groupis a succession consulting firm specialized in helping financial advisors’ value, protect, merge, buy and sell their financial advisory business. With decades of combined industry experience, SRG brings a unique combination of skills, resources and industry expertise to help provide solutions to advisors.
For more information on Succession Resource Group, visit www.successionresource.com
Contacts
Succession Resource Group
David Pan – Marketing and Brand Manager
Email: david.pan@successionresourcegroup.com