Concerns about possible changes to the U.S. tax code after the coming election have helped the number of RIA mergers and acquisitions in the third quarter break the all-time quarterly record, DeVoe & Co. said Wednesday.
With a week still remaining in the quarter, there were already 36 transactions in Q3, “eclipsing the previous high of 35 transactions set in Q1 2020,” the firm said.
“High valuations, attractive deal structures, and concerns about a potential change in the tax code should [Joe] Biden win have all contributed to the accelerating activity,” it said.
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“There is a strong potential that 2020 will be a record year,” David DeVoe, CEO and founder of the firm, told ThinkAdvisor by email, adding: “Our detailed DeVoe RIA Deal Book will come out in the next few weeks.”
The firm reported 132 transactions for 2019. 2020 is now “on track to be the seventh consecutive year of record RIA M&A activity,” it said Wednesday. That comes after a Q2 that was the slowest quarter in almost two years, DeVoe & Co. said in July.