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Why RIA and Indie Broker-Dealer M&A Deal Size has Tripled

February 22, 2018

Despite a small drop in the number of mergers and acquisitions in the RIA and independent broker-dealer space this year, the overall size of the deals has more than tripled compared to last year, according to a recent Fidelity report cited by ThinkAdvisor.

Thirteen deals in total took place last month, representing $21.5 billion in assets, compared to 16 transactions and just $6.6 billion in January 2017, according to Fidelity, the publication writes. In January 2016, 12 deals accounted for $9.6 billion in assets, ThinkAdvisor writes, citing the report that aims to capture deals involving SEC-registered RIAs, independent broker-dealers registered with Finra and breakaways heading to RIAs.

The start of 2018 also saw the return of strategic acquirers for the first time since October, according to the publication. While strategic acquirers were behind just six deals in the last half of 2017, they were behind five of the 13 deals this January, ThinkAdvisor writes.

Fidelity believes 2018 will be a good year for M&As while speakers at a recent Fidelity forum on M&As said the industry will have “accelerating consolidation this year,” the publication writes.

By Alex Padalka
  • To read the ThinkAdvisor article cited in this story, click here.