Although client referrals and COI are a primary channel for RIA growth, according to the study, some firms are also looking to non-organic means to achieve growth – specifically, by acquiring another firm. Approximately 25 percent of RIAs in the $100 million to $1 billion AUM segment indicated they are actively seeking to acquire another firm. Among firms managing $1 billion or more in AUM, 34 percent are actively looking to acquire another firm. Among the fastest growing firms, 1 in 5 reported plans to acquire another RIA while 1 in 3 of all other firms is looking to acquire.“With the compelling benefits of increased scale, it’s not surprising that RIAs are eager to move to the next level with their business,” said Beatty. “Whether through organic or non-organic means, the path to growth is a strategic decision that firms are weighing at the individual level. The study results can help them make these decisions armed with better information based on real data from their peer groups.”
(Graphic: Charles Schwab)
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