Charles Schwab Corp (NYSE:SCHW)’s Advisor Services RIA M&A data release

Posted by Lynn Eisler August 14, 2013 0 Comment 812 views


Charles Schwab Corp (NYSE:SCHW)’s Schwab Advisor Services has compiled an industry-wide RIA or Registered Investment Advisor merger and acquisition data. According to this data, the 1st half of 2013 was wrapped-up with 18, completed transactions which totaled $15.4B in AUM or Assets under Management. Since the first half of 2008, this is the absolute lowest on record.

In comparison to this, the 1st half of 2011 ended with twenty seven deals that totaled $20B in AUM while 25 deals that totaled $36B in AUM saw completion in the same period in the previous year. In the Q2 there was a slowdown in the deal-flow as only 5 deals were competed. However, there was a rise in the average deal-size that stood at $447 in the first quarter to $1.9B in the second quarter of 2013.

The deal delay

The senior vice-president of Sales and Relationship Management at Schwab Advisor Services, Jonathan Beatty said that the rapid increase in organic growth that is being experienced is primarily due to a decrease in mergers and acquisitions. He said there is a possibility that advisors who are considering an ownership-transition might be focusing on more value-creation within their firm which leads them to delay a particular deal for a few years.

Workings of the firm

As per an SCHW RIA Benchmarking Study for the current year, of the firms that manage approximately $100M-$1B in AUM, 25% are very actively seeking to acquire some other firm. The bright spot is that advisors now have additional access to capital. In effect, this has added to their ability of investing in newer capabilities and to hire the topmost talent.

The RIA M&A industry-data from Schwab Advisor Services is provided as part of its continued commitment to advance the RIA’s interests. This means that advisors receive support through every single phase of this process of launching, operating, growing and moving out of a business.


About Lynn Eisler

Lynn Eisler is a national news reporter focusing on economic issues, data analysis and the financial health of state and local governments. Lynn has been honored with the H.L. Mencken Award for Investigative Reporting, the Champion of Justice Award for reporting on the drug war, and the John Hancock Award for business reporting. Lynn was also a Knight Medical School Fellow at the University of Michigan.

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