He adds there’s a higher influx of sellers in the market, and that’s accelerating because of market volatility and the fear of a bear market coming in the near future. As such, RIA firms want to try to sell now to maximize their value at a time when a hyper-competitive M&A market is boosting valuations.
“All of that is driving more RIAs to consider succession planning right now,” Barton says.
You’d think Mercer Advisors might be pooped after expending the energy to acquire three RIA firms in short order, but the company isn’t done yet this year.
“You’ll see two more announcements within the next three weeks,” Barton says.
Once completed, those purchases will give Mercer Advisors eight transactions in 2018, representing about $2.5 billion in acquired assets. They also did eight acquisitions in 2017, as well as three others in 2016
“We’re among the most active and aggressive serial acquirers in the United States,” Barton says.