RIA M&A in 2016 was strong, very strong. Reports produced already in 2017 indicate the industry is in for another banner year in RIA M&A.
- Total deal value reached $136 billion, rising 17% YOY and up 186% over 2014.
- 28 transactions had more than $1 billion in AUM.
- Average deal size increased 5% YOY and 250% over 2014.
- Transaction volume reached 94 deals, 12% YOY increase.
- Breakdown of buyers: RIAs 41%, strategic acquiring firms 29%, private equity firms 20%, and banks at 9%.
104 total transactions representing nearly $67.1 billion AUM
- 62% of the transactions occurred in just 8 states: CA, TX, FL, IL, PA, NY, CT, and MD
- RIAs selling made up 55% of the transactions and Breakaways made up 45%
- Fidelity February 2017 M&A Transaction Report (link below) shows significant YOY increase with 28 transactions in 2 months representing $18 billion AUM
- In 2016, both M&A and breakaway activity in the wealth management industry continued their impressive runs, respectively achieving their highest and second highest years on record.
- RIAs successfully consummated 138 M&A transactions in the year, up 10% from their previous highs in 2015.
- 430 breakaways were reported in the year, down slightly from their milestone record of 465 in 2015.
- With new and larger buyers in the industry, an aging advisor population, and an increase in available financial resources, the market is becoming ever more liquid, especially for $1 BN+ AUM deals. This is evidenced by a 64% increase in the average M&A transaction size since 2014, which topped $1.44 BN in 2016.
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