{"id":21311,"date":"2024-01-25T05:20:33","date_gmt":"2024-01-25T05:20:33","guid":{"rendered":"https:\/\/www.thinkadvisor.com\/2024\/01\/25\/advisor-ma-fell-in-2023-why-devoe-says-its-no-big-deal\/"},"modified":"2024-01-25T05:20:33","modified_gmt":"2024-01-25T05:20:33","slug":"advisor-ma-fell-in-2023-why-devoe-says-its-no-big-deal","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2024\/01\/25\/advisor-ma-fell-in-2023-why-devoe-says-its-no-big-deal\/","title":{"rendered":"Advisor M&A Fell in 2023: Why DeVoe Says It’s No Big Deal"},"content":{"rendered":"
<\/a><\/div>\n
<\/div>\n

RIA mergers and acquisitions declined year over year for the first time in at least a decade in 2023, as higher interest rates discouraged sellers, according to a new report Thursday by DeVoe & Co. <\/span><\/p>\n

For advisors looking to buy or sell, the good news is that the overall M&A market remains busy. <\/span><\/p>\n

Deals also began to tick up in the fourth quarter of 2023, according to DeVoe\u2019s latest RIA Deal Book report. Sixty-six deals closed in that quarter, up 8% over the prior year. <\/span><\/p>\n

\u201cMany sellers believe that the interest rate environment has compressed valuations,\u201d the firm\u2019s CEO and founder, David DeVoe, said in an email to ThinkAdvisor on the study. \u201cPausing any major moves is not uncommon in times of uncertainty or volatility.\u201d <\/span><\/p>\n

What to know<\/b>: <\/span>In 2023, the number of deal closings fell 5% to 251, from the record 264 in 2022. Up to that point, the industry had seen nine consecutive years of record deal volume, DeVoe said in the report. <\/span><\/p>\n

In addition to interest rates, \u201cother factors contributing to the slowdown included extended due-diligence processes, evolving deal structures and a greater emphasis on the true value of a buyer\u2019s equity,\u201d the report authors wrote. <\/span><\/p>\n

Why it matters<\/b>: <\/span>In particular, RIAs seeking to sell their practice internally face a succession crisis. The <\/span>average advisor is in their 60s<\/span><\/a> and aging out of the profession. But in 2023, only 18% of next-gen RIA advisors were perceived as being able to afford to buy their firms from the current owners \u2014 down from 38% who could back in 2021, the report said, noting that firm valuations had grown too high for many. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

RIA mergers and acquisitions declined year over year for the first time in at least a decade in 2023, as higher interest rates discouraged sellers, according to a new report Thursday by DeVoe & Co. ...<\/p>\n","protected":false},"author":1,"featured_media":21312,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[1],"jetpack_featured_media_url":"https:\/\/blog.lifeinsurance-orleans.ca\/wp-content\/uploads\/2024\/01\/advisor-ma-fell-in-2023-why-devoe-says-its-no-big-deal.jpg","_links":{"self":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/21311"}],"collection":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/comments?post=21311"}],"version-history":[{"count":0,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/21311\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media\/21312"}],"wp:attachment":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media?parent=21311"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/categories?post=21311"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/tags?post=21311"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}