04.02.25

M&A Report Sees Rising Valuations for RIAs

by: Eric Rasmussen

The valuations for registered investment advisor (RIA) firms climbed last year, with smaller firms seeing more interest, according to a report from consulting firm Advisor Growth Strategies. The heavy deal volume has been partly driven by all the institutional money pouring into the space to pursue deals and seize on a fragmented market. The report put the median valuation of an RIA firm at 11 times EBITDA (earnings before interest taxes, depreciation and amortization), based on 233 RIA deals and 239 RIA-plus-broker-dealer deals reported by Fidelity.

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