Where will RIA buying be strongest in the next year?

investmentnews.com:

Gladstone Group, a notable entity in the financial services sector focusing on mergers and acquisitions, strategic growth consulting, and executive search, has come out with new forward-looking research on trends in the M&A space.

The firm revealed its inaugural research report, The Gladstone Prognosticator, during its recent annual RIA M&A Conference.

“Research that analyzes past mergers and acquisitions is a history lesson,” Dan Kreuter, founder and CEO of Gladstone Group, said in a statement. “Advisors armed with knowledge of what acquirers intend to do have a competitive advantage.”

The first edition of the report took responses from a rich cross-section of M&A deal participants, surveying more than 100 leading aggregators, deal attorneys, lenders, and industry consultants, offering a comprehensive look at RIA M&A trends.

According to the findings, wealth advisory firms managing assets between $500 million and $1 billion are poised to be the prime targets for acquisitions over the next year, with 97 percent of buyers showing a strong interest in this segment.

The $100 million to $500 million range follows as the second most sought-after sector, with roughly three-quarters (73 percent) of poll respondents keeping an eye on that space.

The research also revealed a shift in sentiment toward hybrid business models in the industry, which blend fee-based and commission-based services.

While 47 percent of buyers are not interested in the hybrid model, a 53 percent majority are at least somewhat keen, including 30 percent who fully embrace it and 23 percent who’d demand that new business be exclusively fee-based and not involve commissions.

“Our study dives deep into crucial aspects of the RIA M&A industry, including