What Really Drives RIA Valuations
Michael Molnar, Head of Corporate Development and M&A at Cetera, breaks down what actually drives RIA valuations beyond headline multiples. He identifies two primary levers: business composition, where advisory and recurring revenue models command higher valuations, and genuine organic growth measured by net new assets, not market appreciation. He also highlights common deal failures, including overemphasis on valuation over structure, cultural misalignment, insufficient trust, and the emotional challenges founders face when selling their life’s work.
