Although the second quarter’s 29 RIA mergers and acquisitions marked the slowest quarter in almost two years, total 2020 deal activity may still end up comparable to 2019, according to DeVoe & Co.
“The year seems on track for ~130 transactions, but may edge above 2019,” David DeVoe, CEO and founder of the firm, told ThinkAdvisor by email. DeVoe & Co. reported 132 transactions for 2019.
In Q2, there were 29 transactions, a 17% decline from 35 in Q1 last year and a 9% decline from Q2 2019, according to the Q2 Capital Group/DeVoe RIA Deal Book released Wednesday.
The decline was “less drastic than one would have expected,” DeVoe said.
Transaction volume at the midpoint of 2020 was exactly the same as it was a year ago, at 64 transactions, it said.
“After six years of consecutive record highs, the RIA M&A market slowed down” in Q2, the Deal Book said. “As COVID-19 impacted the lives of all Americans, advisors focused intensely on supporting them, rebalancing their portfolios and recasting their financial plans.”
However, Q3 got off to a fast start, DeVoe noted, telling ThinkAdvisor: “July started with fireworks. We are already at 8 deals for the month.”