The mergers and acquisitions action is heating up on the RIA front. Independent RIAs were swallowed up by asset management firms at a soaring rate during the first quarter. Seventeen firms merged or were acquired. Out of the 17, nine involved advisors moving from wirehouse firms.
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The flow of deals
involved $24 billion in invested assets. This was a bounceback from the slower pace of acquisitions in 2011. The size of the deals is also increasing, with first quarter average deals size reaching $1.4 billion in assets. Average deal size in 2011 was $798 million, down from $895 million in 2010.
This confirms a growing trend in RIA acquisitions while acknowledging fluctuations within that trend.