The 3 types of RIA buyers; more IBD advisors tempted to go independent; Raymond James CEOs on growth, tech and more

RIAs: Financial advisors trying to make sense of the growing number of potential buyers asking about a potential deal for their firms could start by thinking through the type of acquirer that would be the best fit.

There has been renewed dealmaking momentum in 2024 after 2023's slight drop-off, and those acquirers tend to fall into one of three categories, according to a report last month by research and consulting firm Datos Insights . There are "rookies" that entered the M&A marketplace in the past three years; "veterans" that have been aggregating multiple registered investment advisory firms for a longer period; and "strategists" that are brokerages, banks, insurers or other non-RIAs.?

Read: An RIA's guide to the 3 types of firms trying to buy them

PRACTICE AND MANAGEMENT: It's not just advisors at wirehouses who are looking at the prospect of RIA independence with a longing eye. It's also their colleagues at independent broker-dealers.

A recent survey conducted by the research firm Cerulli Associates finds that 32% of advisors at independent broker-dealers have considered leaving to start their own registered investment advisory firm in the past 12 months. The results — compiled from a poll of more than 2,000 advisors at broker-dealers, RIAs and wirehouses in 2023 — furnish yet more evidence that the appeal of independence remains strong in the wealth management industry.

Read: Lure of independence strong for IBD advisors

TECHNOLOGY: There are times when the bullish move is to hold steady. For Raymond James — which has sometimes been criticized for not following market trends — holding steady is paying off. The St. Petersburg, Florida-based firm posted record profits in the first quarter of 2024 with a 12% jump in net income to $474 million compared to a year earlier. Its wealth management division, called Private Client Group, also saw a 9% increase in net revenue to $2.34 billion.

Outgoing CEO Paul Reilly and incoming CEO Paul Shoukry both sat down with Financial Planning to discuss this and more at the recent RayJay conference.

Read: Raymond James CEOs on criticisms that led to growth, tech and more advisors

Register now for ADVISE AI , the first-ever wealth management conference focused solely on AI.

Subscribe for the latest in wealth management and financial planning news here .