Newly released data from Charles Schwab Advisor Services of industry-wide mergers and acquisition activity among registered investment advisors (RIAs) for the first half of 2011 reveals a significant jump in the average deal size.
According to the Schwab data, released Wednesday, there were 27 M&A transactions involving RIAs in the first half of this year, representing approximately $20.8 billion in total assets under management (AUM) acquired in the first two quarters.
The AUM for the average deal during the first half of 2011 was $770 million. In contrast, the first half of 2010 yielded 30 transactions representing $12.4 billion in AUM, with an average AUM per deal of $412 million.
“Thus far in 2011, we’ve seen a significant leap in the average deal size due to a greater proportion of those with $1billion or more in AUM, despite a slight decrease in transactions over the same period last year,“ said David DeVoe, managing director of strategic business development for Schwab Advisor Services, in announcing the M&A results.