RIA dealmaking window is narrowing, EY-Parthenon’s Joshi tells advisors
Joshi said the trend reflects continued discipline in the RIA market rather than a broad valuation reset, with multiples for top-tier franchises still elevated.
“In the RIA market, the trend points to continued discipline rather than a broad-based valuation reset,” he said. “Multiples for high-quality franchises remain elevated because the fundamental investment thesis is still attractive. Financial advice remains a largely domestic, relationship-driven business with recurring revenue and favorable demographic tailwinds, making RIAs attractive compared with sectors facing greater geopolitical and cross-border uncertainty.”
Financing, AI
Higher financing costs and the emergence of AI are reshaping the calculus for buyers, though Joshi does not expect AI to disrupt the high-net-worth end of the business first.
“At the same time, higher financing costs are making acquisitions more expensive to execute, while AI is introducing questions around the future economics of advice,” Joshi said. “Most investors, however, believe AI’s impact will be felt first in more standardized advice and lower-balance segments rather than the high-net-worth, ultra-high-net-worth, and family office channels that many RIAs serve today.”
“Elevated funding costs, macroeconomic uncertainty, and technological disruption aren’t necessarily driving valuations materially lower,” he added. “Instead, they are making buyers and sellers far more selective. The result is an active market with fewer blockbuster transactions and more attention around organic growth, demographics, advisor retention, integration of businesses, and the sustainability of earnings.”
