Despite market volatility and geopolitical uncertainty in early 2022, wealth management firms achieved record mergers and acquisitions (M&A) activity, according to Echelon Partners. Registered investment advisor (RIA) deals reached 181 in the first half of the year, with total 2022 transactions projected at 308, slightly surpassing 2021. Strategic acquirers, consolidators, private equity firms, and independent broker-dealers drove much of the deal activity. Average assets under management (AUM) per transaction declined to $1.84 billion, reflecting more smaller acquisitions.
Key drivers include an aging advisor workforce, strong buyer demand for talent, succession planning needs, and opportunities for scaling compliance, technology, and management efficiencies. Independent advisors can position themselves as attractive acquisition targets by focusing on organic growth, recruiting other advisors, and maintaining strong investment performance. High M&A activity presents opportunities for talent acquisition, AUM growth, and long-term succession planning, helping advisors ensure clients and employees experience smooth ownership transitions while maximizing firm value…