Consolidators Say RIA Valuations Have Likely Peaked

DeVoe & Co.’s second-quarter RIA M&A Deal Book reports that executives at 11 large consolidators surveyed in May believe valuations for registered investment advisor deals have likely peaked. None of those respondents expect prices to rise in the next six months, while 18% forecast declines, up from 7% in 2025. In last year’s survey, 8% had predicted higher prices.

The firm said transactions reporting multiples as high as 20 times EBITDA remain rare. DeVoe wrote that such multiples typically apply to firms managing tens or hundreds of billions in assets with strong growth, high profitability and experienced leadership. The report also noted that private-equity-backed consolidators tend to pay the highest EBITDA multiples, often well above prices for internal succession transactions.

Consolidators signaled some pullback in acquisition plans. Ten percent of respondents said they planned to make fewer consolidations in the next six months, a response not recorded in the same poll a year earlier. DeVoe’s data showed a widening gap between buyer offers and seller expectations, which the firm attributed to the lingering influence of headline transactions that do not reflect typical outcomes.

Higher borrowing costs and larger capital requirements for sizable deals were cited as factors limiting what buyers can pay. Haig Ariyan, founder and CEO of Arax Investment Partners, pointed to the increasing size of acquirers and the greater capital needed to complete large transactions, which reduces willingness to pay high multiples without clarity on future capital raises or exit options.

Asset levels were a key determinant of buyer interest. Forty-six percent of surveyed consolidators preferred targets with $1 billion to $5 billion in assets under management, while 27% favored firms with $500 million to $1 billion. None of the respondents identified interest in firms with $100 million to $500 million in AUM. DeVoe’s report found that deals structured as internal successions generally attract lower valuations than sales to external, private-equity-backed consolidators.

Some deal advisers questioned whether survey responses will match behavior at the negotiating table. M&A lawyer Corey Kupfer suggested consolidators’ public forecasts may reflect bargaining positions and said he does not expect a sharp correction; he added that valuations may have reached a new plateau compared with five to seven years ago.

Deal counts remain elevated. DeVoe recorded 167 completed RIA transactions in the first half of this year, up from 148 in the same period of 2025. The total number of deals last year reached a record 322. Industry consultants reported a median RIA valuation of 11.6 times EBITDA in 2025, up from 11.0 the prior year.

Arax and other buyers said they remain willing to acquire firms that add complementary capabilities, such as family office services, retirement planning or tax planning, and may pay a premium for strategic fit. DeVoe concluded that while top-tier, high-growth RIAs can still command premium prices, broader market pricing appears more constrained by financing limits and a widening mismatch between seller expectations and buyer offers.