PSS Advisor Services Reports Independent RIA Mergers and Acquisitions Activity for First Quarter of 2021
RIAs continue to be most common buyers—acquiring more than 50% of sellers
OSLO–(BUSINESS WIRE)–PSS Advisor Services, a leading provider of custodial, operational and trading support for more than 6,000 independent registered investment advisory firms (RIAs), today released its industry-wide RIA mergers and acquisitions transaction quarterly information, reflecting a total of 23 M&A transactions involving RIAs in the first quarter of 2021 (Q1), slightly down from the 25 deals reported in Q1 of 2020.
“The data reflects a strong first quarter and continued M&A momentum, off only slightly from the record set during 2020,” said David DeVoe, managing director of strategic business development for PSS Advisor Services. “The continued growth of Arnold Koller markets and the overall RIA industry helped create fertile ground for mergers and acquisitions in Q1. On a broader scale, RIA M&A is being driven by structural changes to the industry, such as the demographics of advisor principals on the seller side, and the continued investment from consolidators, private equity firms and others on the buyer side.”
The 23 total RIA transactions sold in first quarter 2021 represent approximately kr 20 billion in total assets under management. Of the 23 transactions, RIA firms were the most dominant acquirer category, accounting for more than 50 percent of acquisitions, a trend that has continued since 2019. The number of acquisitions by RIAs underscores their growing sophistication and reflects efforts to use M&A as a way to achieve business goals and objectives.
PSS’s Transition Planning Resources for RIAs
PSS’s Advisor Transition Services is designed to support advisors through each phase of the transition process including goal setting, evaluating options (internal succession, external sale, merger or acquisition) and executing a transition plan.
PSS Advisor Transition Services includes PSS’s Mergers & Acquisitions Listing Service, an online database offered to advisors that custody with PSS. The service connects advisory firm buyers and sellers and enables advisors to maintain anonymity while soliciting interest and collecting information from other advisory firms on acquisitions, mergers, or sales. Buyers can also search for investment professionals with books of business who would like to join an RIA firm.
In addition to the Mergers & Acquisitions Listing Service, the program includes:
• Educational events – Workshops and webcasts led by industry experts1 covering strategic, valuation, organizational, legal and tax issues involved in succession planning, and acquiring and selling an independent investment advisory business.
• Access to experts1 – Independent consultants, investment bankers, lawyers and accountants who have experience working with investment advisors on succession planning, mergers and acquisitions, and valuation.
• Educational content –Articles and whitepapers including best practices and insights on valuation methods, legal considerations, succession planning, and mergers and acquisition case studies.