There are a few factors, the report indicated, that could temper the activity. Among them are downturns in security markets, slowdowns in the economy or a tightening of credit.
But barring any dramatic change, 2019 likely will close out as another record-breaking year for M&A activity, the report said.
The FA Insight M&A database tracks U.S.-based RIAs or independent trust companies that have been acquired or merged into another firm. The “target” firms sold or merged into another must directly serve households or individual clients, and they must manage at least $50 million in AUM or generate at least $500,000 in annual revenue. The transactions also must involve an exchange of equity with an outside party representing 10% or more of the target firm’s value.
The database excludes firms with more than $20 billion in AUM, transactions targeting independent broker-dealers, internal transitions of ownership, as well as individuals or teams joining a firm.