The RIA acquisition market is expected to heat up as President Biden’s proposed tax increases on the wealthy push advisors to consider deals sooner. Independent advisory firms, particularly those led by advisors nearing retirement or fast-growing younger teams, may seek mergers, acquisitions, or minority capital investments to lock in current capital gains rates. Experts like Carolyn Armitage of Echelon Partners, Peter Nesvold of Nesvold Capital Partners, and Harris Baltch of Dynasty Financial Partners say higher capital gains rates, changes to inherited asset taxation, and the desire for strategic partners are fueling deal-making urgency.
Private equity-backed deals and revenue participation structures are likely to grow, allowing advisors to monetize part of their practice without giving up full equity. With RIA M&A already setting record volumes, advisors are exploring creative ways to capitalize on their practices and secure growth while minimizing future tax impact…