Experienced RIA Acquirers are Having an Excellent Year

Derek Steingarten spoke to Mergers & Acquisitions for an article about the increase of registered investment advisor (RIA) deals in 2022.

"For an RIA prepping for an acquisition, it is critical to understand the economics and typical deal structure that determines how these deals get done with regard to initial sale price metrics and earnout structures," Derek said.

He added: "Even the deal itself will hinge on hitting the legal consent threshold for client accounts, based on revenues or AUM [assets under management], and influenced by legal terms in client contracts and other factors. Getting expert advice about this long before the term sheet stage is critical."

Read the full article.