“The Gladstone Prognosticator^™” is the first forward-looking mergers and acquisitions (M&A) research study, providing firms with a consensus opinion on trends that will impact RIA M&A

Gladstone Group, a leading specialist in financial services mergers and acquisitions (M&A), strategic growth consulting, and executive search, today announced the launch of its forward-looking M&A research, The Gladstone Prognosticator^™, at its annual RIA M&A Conference. The inaugural study reveals that wealth advisory firms with $500M to $1B in assets under management (AUM) are the most attractive acquisition targets for the next 12 months with an overwhelming 97% of buyers indicating their strong interest in this segment; the $100M-$500M sector is the second most desirable at 73%. This highlights the immense opportunity before firms in these AUM ranges as they are poised to capture the attention of nearly all potential buyers in the market.

The study also sheds light on the evolving perception of the hybrid business model, which combines fee and commission-based services. While 47% of buyers expressed no interest in the hybrid model, the majority (53%) either fully embrace it (30%) or are amenable to supporting it (23%), provided that all new business is fee-based. This reveals that although there is a clear preference for fee-only business, most buyers are willing to accommodate the hybrid model to some extent, signaling a shift in the industry's approach to business structure.

"The Gladstone Prognosticator^™ is a game-changer for RIAs to navigate the complex M&A landscape," said Derek Bruton, Gladstone Group’s Senior Managing Director. "With an astounding 97% of buyers laser-focused on firms with $500M to $1B in AUM, it's clear that this segment is the sweet spot for M&A activity in the coming year. In addition to this finding, our study dives deep into crucial aspects of the RIA M&A industry, including transaction volume, leverage and equity preferences, and deal terms, empowering firms to make informed decisions about their future whether they're interested in buying, selling or growing."

Other notable findings of the first Gladstone Prognosticator^™ found that multiples, down payment percentages, and retention terms are expected to remain at current levels, indicating a stable market for advisory firms considering M&A transactions. This underscores the importance of seizing the favorable deal terms currently available in the market.

The annual Gladstone Prognosticator^™ draws upon the expertise of more than 100 leading aggregators, deal attorneys, lenders, and industry consultants, ensuring a robust and reliable analysis of RIA M&A trends.

“Knowledge is power, and The Gladstone Prognosticator^™ is the key to unlocking that power for RIAs,” said Dan Kreuter, Founder and CEO of Gladstone Group. "Research that analyzes past mergers and acquisitions is a history lesson. Advisors armed with knowledge of what acquirers intend to do have a competitive advantage. Our inaugural study's insights into the evolving perception of the hybrid model and the stability of deal terms are just a few examples of how The Gladstone Prognosticator^™ is set to become an essential tool for firms looking to stay ahead of the curve."

For more information about The Gladstone Prognosticator^™, including how to access the findings, contact us at https://gstonellc.com/contact-us/.

About Gladstone Group

Gladstone Group Inc. specializes in Mergers & Acquisitions, Strategic Consulting, Valuations, and Executive Search. Our exclusive focus is on serving the wealth and investment management community across the United States. For more information, visit https://gstoneinc.com/.

The Gladstone Prognosticator is a trademark of and exclusively owned by Gladstone Group Inc.

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“Knowledge is power, and The Gladstone Prognosticator is the key to unlocking that power for RIAs,” said Dan Kreuter, Founder & CEO of Gladstone Group.