DeVoe & Company just released their 2020 DeVoe RIA M&A Outlook Study. This is their 3rd annual survey of RIAs to gauge current and shifting perceptions about M&A activity within the industry and it is full of great insights.
Key Findings:
• COVID seemingly contributed to a shift from external to internal sales bias. Confidence that G2 can afford to buy out the founders increased by a sizable amount since last year (34% to 39%), while there was a decreased degree of openness to selling an external stake of their firm vs. last year.
• This increased confidence in G2’s ability to afford to buy out the founders is likely related to an expectation that COVID would drive down valuations.
• 85% of advisors expected the pandemic would create a slowdown in M&A.
• Advisors increasingly see the lack of succession planning as a key challenge for the industry – 90% see it as a problem.
• The vast majority of advisors engaged in internal succession (92%) are staying the course with their plans.
AdvisorsUNITE 