9 Reasons RIAs Should Seek Organic Growth Now: DeVoe

Growing organically has become especially important right now for RIA firms after merger and acquisition activity among RIAs continued to slow in the first quarter of 2023, according to David DeVoe, CEO and founder of DeVoe & Co.

The number of RIA M&A deals dropped 22% in the first two months of 2023 versus the same period a year ago to 38 from 49, the company said Feb. 27 while announcing data from its latest RIA Deal Book report.

There were 24 transactions in January 2023, a 14% decline from January 2022. Transactions went on to drop 33% in February, with only 14 announced through Feb. 27, down from 21 in the same month last year, according to the company.

RIA firms may need to find other ways to grow, and it’s important that they grow for the sake of not only their businesses, but for their clients and employees as well, DeVoe said during a recent webinar on accelerating organic growth.

“Sustainable growth is not driven by charisma, luck or the personal heroics of the founders,” he told viewers. “Sustainable organic growth comes as the result of an intelligently designed integrated plan and the ongoing coaching of advisors,” he added, noting that his firm’s Growth Accelerator Program provides an “accelerated path to put this in place.”

DeVoe pointed to the old saying “you’re either growing or you’re dying.” He provided nine reasons — three each for the companies, clients and employees — RIA firms should seek organic growth now. Check them out in the gallery.