Despite a temporary fall slowdown in mergers and acquisitions, the November numbers came in slightly higher than anticipated industry-wide, Fidelity reported in its November Wealth Management M&A Transaction Report.
There were 18 RIA M&A transactions, totaling $19 billion in AUM for the month, the Fidelity report said. Deals valued at less than $500 million represented 44% of the M&As and median deal size for the year has come in at $529 million, a decline of 26%.
Yearly activity is up 11% with 202 transactions by the end of November representing $268.7 billion or a 12% decline, according to the report. Deals closed by large strategic acquirers represented 77% of all assets.
November deals were 38% higher than October activity “revealing a resilient M&A environment,” Scott Slater, Fidelity’s vice president of practice management and consulting, said in a statement. “While year-to-date transactions are up 11% versus 2021, year-to-date deal size has declined by 26%.
“Despite significant market and cost of capital headwinds, RIA M&A activity remains stronger than anticipated with strategic buyers and their private equity sponsors continuing to see healthy pipelines with relatively stable valuations,” Slater said.