Mergers and acquisitions involving registered investment advisors continued at a brisk pace during the first half of 2014, indicating a healthy RIA space that is ripe for continued growth, according to research released Wednesday by Schwab Advisor Services.
During the first two quarters of the year, 29 merger or acquisition deals were completed, with a total of $32.6 billion in assets under management, far outstripping the activity seen in the first half of 2013, Schwab says. Activity was up during the second quarter of this year, with 16 deals totaling $19 billion in AUM, compared to 13 deals totaling $14 million in the first quarter.
The total for the first six months was far above the total recorded for the first half of 2013, when 18 deals were completed totaling $15.4 billion in AUM. Last year ended better, with a 20 percent increase in activity, but the first half of 2013 marked the lowest level of mergers and acquisitions since the first half of 2008.
The average deal size also increased during the first half of 2014, reaching $1.13 billion, compared with $808 million recorded for the first half of 2013.
The first half of last year was the anomaly, and this year's first half marks an overall continued increase in merger and acquisition activity, says Jonathan Beatty, senior vice president of sales and relationship management at Schwab Advisor Services, which provides consulting, back office and technology solutions for Schwab advisors.