Schwab Advisor Services Releases Industry-Wide RIA Merger & Acquisition
Activity for Year End 2012
Thirty percent growth in combined deal transaction value year over year
underscores growing size and strength of the RIA model
SAN FRANCISCO -- January 28, 2013
According to industry-wide independent registered investment advisor (RIA)
mergers and acquisition data compiled by Schwab Advisor Services, 2012 closed
with a thirty percent increase in the total value of M&A transactions year
over year. The assets under management of the 45 deals completed in 2012
totaled $58.8 billion versus $43.9 billion for the 57 deals in 2011.
“The independent model has become a destination of choice for both advisors
and high-net-worth investors alike, and the growth in the overall size of the
deals we saw in 2012 is proof that this is a model that is growing and
flourishing,” said Jon Beatty, senior vice president, sales and relationship
management, Schwab Advisor Services. “It also points to a new inflection point
for the industry, as RIAs appear to be actively considering M&A as a way to
grow their business, and as a component of their succession planning efforts.”
National Acquiring Firms Continue to Lead M&A Deal Flow
National Acquiring Firms remained the dominant buyer category, finishing the
year with 25 of the 45 total M&A deals. Meanwhile, the proportion of
acquisitions by RIAs dropped in 2012, down from 44 percent of the total deals
closed in 2011 to 20 percent of those completed in 2012.
“National acquiring firms are proving to be a good overall alternative for the
growth of the industry, attractive to both advisors that are looking to join
the move to independence or RIAs that are seeking to expand their footprint or
execute a succession strategy,” said Beatty.
Activity among National Acquiring Firms remained high for the third
consecutive quarter in 2012, representing 55 percent of the deals completed
throughout the year.
Schwab Advisor Services’ quarterly RIA M&A report is provided as part of the
firm’s continued commitment to advancing the interests of RIAs across the
business lifecycle. This includes supporting advisors through each phase of
the process of starting, running, growing and exiting a business.
About Schwab Advisor Transition Services™
Schwab Advisor Transition Services helps advisors think through growing and
exiting a business at the right time, with the right people and at the right
value. This includes goal setting, evaluating options (internal succession,
external sale, and merger or acquisition) and executing a transition plan.
Schwab’s Transition Services includes Schwab’s M&A Listing Service, an online
database offered to independent registered investment advisors that custody
with Schwab Advisor Services. The service connects advisor firm buyers and
sellers and enables advisors to maintain anonymity while soliciting interest
and collecting information from other advisor firms on acquisition, mergers,
or sales. Buyers also can search for investment professionals with books of
business who would like to join an RIA firm.
Additional information and new transitions content are available at
About Charles Schwab
The Charles Schwab Corporation (NYSE:SCHW) is a leading provider of financial
services, with more than 300 offices and 8.8 million active brokerage
accounts, 1.6million corporate retirement plan participants, 865,000banking
accounts, and $1.95trillion in client assets as of December 31, 2012.The
companywas ranked ‘Highest in Investor Satisfaction With Self-Directed
Services’in the 2012 US Self-Directed Investor Satisfaction Study^SM from J.D
Power and Associates. Through its operating subsidiaries, the company provides
a full range of securities brokerage, banking, money management and financial
advisory services to individual investors and independent investment advisors.
Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC,
www.sipc.org), and affiliates offer a complete range of investment services
and products including an extensive selection of mutual funds; financial
planning and investment advice; retirement plan and equity compensation plan
services; compliance and trade monitoring solutions; referrals to independent
fee-based investment advisors; and custodial, operational and trading support
for independent, fee-based investment advisors through its Advisor Services
division. Its banking subsidiary, Charles Schwab Bank (member FDIC and an
Equal Housing Lender), provides trust and custody services, banking and
lending services and products. More information is available at www.schwab.com
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Read our corporate blog: SchwabTalk
All data compiled and analyzed by Schwab Advisor Services. Data reflects firms
being sold with assets under management exceeding $50 million as of December
^1 The information provided on the Site is for general information purposes
only and is not intended to provide specific financial, accounting, tax,
legal, or regulatory advice. Schwab makes no representations as to the
accuracy or appropriateness of the information for any given situation.
Schwab may limit what can be listed on the M&A Listing Service. Buyer listings
and Career Opportunity listings are generally, but not always, limited to
independent investment advisors that custody their clients' assets with Schwab
Advisor Services. Schwab Advisor Services may further limit Buyer listings and
Career Opportunity listings to those of its clients with whom it has favorable
business prospects. Schwab Advisor Services has a financial interest in, and
compensation received by Schwab Advisor Services personnel is affected by, the
retention and growth of assets custodied at Schwab Advisor Services. This may
incent Schwab Advisor Services to decline some proposed Buyer and Career
Independent investment advisors are not owned by, affiliated with or
supervised by Schwab.
© 2013 Charles Schwab & Co., Inc. (Member SIPC) All rights reserved.
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