Regulation Update: RIA M&A 2024 — navigating the evolving landscape
- July 1, 2024: Vol. 11, Number 7

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Regulation Update: RIA M&A 2024 — navigating the evolving landscape

by AdvisorLaw

The registered investment adviser (RIA) mergers and acquisitions market is undergoing a significant transformation. After a decade of continuous growth, deal volume witnessed a slight dip in 2023. However, industry experts anticipate a resurgence in the coming years, fueled by a confluence of factors that are reshaping the landscape — including a range of regulatory hurdles. Understanding these trends is crucial for any RIA owner or leader contemplating their firm’s future.

One of the most significant drivers of this shift is the impending succession crisis. Many RIA founders, especially those who built their firms during the bull market of the past decades, lack a well-defined succession plan. While this is partly due to a natural human tendency to procrastinate, it’s also a consequence of skyrocketing RIA valuations. With valuations hitting all-time highs, it’s becoming increasingly difficult for the next generation of advisers to afford to buy into existing firms.

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