Succession Resource Group Releases Annual Review of Advisor Acquisition Activity in 2024

Succession Resource Group, Inc. (SRG) recently released its eighth annual review of advisor acquisition activity, revealing key trends for advisors interested in buying, selling, and succession planning. The report highlighted 188 transactions totaling over $25 billion in assets under management, showcasing a resilient and sustained M&A market despite a high-interest rate environment.

One of the key highlights from the report was the average recurring revenue multiple reaching 3.02, a 7.9% increase from the previous year. This growth was attributed to larger firms demonstrating consistent growth and profitability, leading to higher multiples. Additionally, advisors with sell-side support in competitive bidding situations received higher purchase prices and larger down payments compared to those selling off-market.

Market trends indicated that interest rates impacted overall deal activity, but buyer demand remained strong with a buyer-to-seller ratio of 85:1. Third-party financing availability increased, with many broker-dealers offering loans at below-market rates to support inorganic growth plans. Internal succession planning also saw a shift, with firms starting the process earlier and leveraging external capital to assist next-gen advisors with buy-ins.

Looking ahead to 2024, the M&A market is expected to remain active with high valuations, regardless of interest rate fluctuations. David Grau Jr., President of Succession Resource Group, emphasized the importance of advisors being prepared for their exit, as buyers are becoming more experienced and discerning.

Succession Resource Group, founded by David Grau Jr., is a succession consulting firm based in the Pacific Northwest, offering valuation and succession planning services to advisors nationwide. With a team of experts and decades of experience, SRG helps advisors manage the equity in their businesses, improve value, and plan for their eventual exit.

For more information on Succession Resource Group and their services, visit www.successionresource.com.