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First annual decline in more than a decade for RIA M&A
Other - FEBRUARY 29, 2024

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First annual decline in more than a decade for RIA M&A

by Released

RIA M&A activity slowed in 2023, resulting in the first annual decline in volume in more than a decade. The year’s 251 transactions — down 5 percent from 264 transactions in 2022 — followed nine successive years of record M&A activity, according to Devoe & Co. in its fourth quarter report.

Macroeconomic factors contributed to the slowdown in activity. The broader context of rising inflation, global economic challenges and the outbreak of multiple wars dampened M&A activity. But the main culprits were high interest rates, which weighed on buyers, increased their cost of capital and negatively affected their debt ratios.

Other factors contributing to the slowdown included extended due-diligence processes, evolving deal structures and a greater emphasis on the true value of a buyer’s equity

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