RIA M&A Valuations Reached New Heights in 2024, But Future Success Isn't Guaranteed For All
Advisor Growth Strategies 2025 RIA Deal Room Report highlights value creation through integration, tradeoffs in control, and premium qualities favored by buyers in Registered Investment Advisor (RIA) M&A.
PHOENIX, March 31, 2025 /PRNewswire/ -- The RIA M&A market raised the bar again, breaking the deal volume record in 2024 and reaching a new median valuation of 11x. While headline numbers paint a picture of growth, not all will benefit equally from the high tide. The 2025 RIA Deal Room report, from Advisor Growth Strategies (AGS), a leading consulting and transaction advisory firm, analyzes how to navigate a sea of sameness and stand out as a buyer or seller. The seventh annual report, sponsored by BlackRock, provides exclusive insights from buyer case studies, closed transactions in 2024, and the AGS 2025 RIA Survey providing an in-depth look at evolving buyer preferences, deal structures, and what is required for top valuations.
"Sellers taking a leisurely approach can leave a lot on the table," said Brandon Kawal, Partner at Advisor Growth Strategies and lead author of The RIA Deal Room. "Buyers are hungry in 2025 but sophisticated enough to sort the best from the rest. Buyer responses showed us that securing a premium valuation requires building real, transferable value."
Key Findings from the 2025 RIA Deal Room Report:
- Large Firms Are Most Desired, but Target Market Expands – A saturated buyer pool means shifts in size segments and competition for RIAs with less than $1B intensified.
- Deal Structures Mandate Growth - Earnouts and performance-based structures are the norm, placing pressure on sellers to demonstrate sustained growth even after closing. Finding a partner with proven execution capabilities is critical to maximizing valuation.
- Integration Is the Prevailing Path - The most active acquirers are now "single-brand" integrators, prioritizing long-term value creation over fragmented ownership.
- Race to Build the Next Platform – More capital is available for RIAs looking to build scale, but the path to sustainability is more challenging. Those seeking capital must evaluate trade-offs and have a clear purpose—minority investment doesn't always mean minority control.
"Last year, we highlighted the resilience and permanence of RIA M&A," said John Furey, Managing Partner at Advisor Growth Strategies. "With market concentration putting downward pressure on the industry, many firms face organic growth challenges and must decide to build independently or partner. Tremendous opportunities for M&A exist, but the market is more sophisticated, so the stakes are higher."
The 2025 RIA Deal Room is available for download here.
About Advisor Growth Strategies
Advisor Growth Strategies, LLC ("AGS") is a leading M&A advisory and management consulting firm for Registered Investment Advisors ("RIAs"). AGS has an in-depth understanding of RIA business dynamics and provides a personalized approach beginning with education to help RIAs identify ideal long-term partners. AGS encourages an M&A candidate to reimagine the business' future while helping navigate the tradeoffs in a transaction with eyes wide open.
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SOURCE Advisor Growth Strategies, LLC
