Barron's Advisor David DeVoe: How to Maximize Your RIA Firm’s Valuation
Jun 3, 2025
David DeVoe, Founder and CEO of DeVoe & Company, shares his expert insights on maximizing valuations for RIA firms. He discusses the booming M&A activity and how private equity is shaping the industry. DeVoe highlights the importance of emotional and strategic factors when considering a sale, alongside effective marketing strategies that show the true value of financial advisors. He explains key valuation factors like growth and profitability, and emphasizes the necessity of clear career paths for employee engagement and retention.
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RIA M&A Growth Drivers
- M&A activity in the RIA industry is expected to remain strong for 5 to 7 more years due to aging founders and the advantages of scale.
- Larger firms offer growth, operational efficiencies, and expanded client services, driving advisors to sell for reasons beyond succession planning.
Control in Selling RIAs
- Define what control means to you before selling your RIA firm, deciding which business areas you want to retain control over.
- Choose a buyer whose culture and operational style aligns with your goals to avoid regret post-sale.
Meta RIAs vs Wirehouses
- Meta RIAs have scale similar to wirehouses but maintain a fiduciary ethos and client-centric model that differentiates them.
- These firms are often run by experienced industry veterans committed to preserving advisor independence unlike traditional wirehouses.