Advisors are continuing their rapid shuffle among firms, according to the latest findings from DeVoe & Company.
Before the third quarter has even finished, the number of RIA mergers and acquisitions already has topped the total number that were completed in 2020. Total deals as of today reached 160, beating the 159 from last year.
With this new high-water mark, 2021 is officially the eighth successive record year of RIA M&A activity. From a quarterly perspective, the third quarter will also set a new high, DeVoe said. With 59 transactions and a few days to go in the month, the third quarter has surpassed the record of 58 transactions in a quarter set in the first quarter of this year.
A new pattern of with more than 50 transactions per quarter is beginning to emerge after 40-plus was the prior normal, the firm said.
“The amount of M&A activity and interest in transactions among advisors is truly unprecedented,” David DeVoe, founder and CEO of DeVoe & Company, said in a statement. “High valuations, a newfound focus on solving succession problems, achieving scale and concerns about looming tax increases are driving an acceleration of external sales. [But] advisors [should] not forget the importance of culture when deciding on a new partner.”
DeVoe will hold an M&A+ Summit in San Francisco in Oct. 28 and Oct. 29.