After a cautious second quarter for RIA M&A deals amid the COVID-19 pandemic, they came roaring back in Q3, according to consulting firm DeVoe & Co. and clearing and custodial firm BNY Mellon | Pershing.
In fact, the industry surpassed 40 transactions in a quarter for the first time ever in Q3, ending the quarter with 44 deals, David DeVoe, CEO and founder of DeVoe & Co., said Wednesday during the latest entry in the Pershing Webcast Series.
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 had said Sept. 23.
Although the pandemic did initially have an impact on M&As earlier this year, “the rubber band has bounced back,” DeVoe said Wednesday.
Before 2020, there were several years of record M&A activity, including six straight years of record activity leading up to 2019, he noted.
“And then COVID hit and all bets were off,” he said, conceding he initially thought, once the pandemic started, that M&As would not have a record year again in 2020.
However, the 44 transactions that went on to happen in Q3 represented “an all-time high and above anything that we’ve seen before,” he said.