The RIA industry is no longer operating in a single valuation environment. Today, it’s a tale of two markets.
On one end, large, scaled firms are commanding premium valuations, often exceeding 20x EBITDA. On the other end, smaller independent RIAs remain clustered in the mid-to-single digit range. This widening gap is not anecdotal; it reflects a fundamental shift in how advisory businesses are valued.
Recent industry data shows that valuation multiples have been rising overall, with median EBITDA multiples reaching their highest levels in nearly a decade.[1] But that increase has not been evenly distributed.
In fact, smaller RIAs often trade in the 4x–8x range, while larger, multi-advisor firms with scalable infrastructure command meaningfully higher multiples. [2]
At the same time, deal activity has surged. Fidelity reports a dramatic increase in RIA M&A transactions in recent years, reflecting strong buyer demand and increasing competition for high-quality firms. [3]
A Structural Shift: Not a Cycle
This divergence signals something bigger than market conditions. It reflects a structural transformation in the industry:
- Buyers are prioritizing scale and infrastructure
- Institutional capital is flowing into the space
- Premium valuations are increasingly reserved for platform-like businesses
The takeaway is clear:
This is not just a rising market; it’s a re-ranking of firms based on quality and scalability.
For advisors looking to position themselves for premium valuations, partnering with a platform that emphasizes scale, infrastructure, and strategic alignment can make a meaningful difference. At OneSeven, we help advisors leverage these advantages, combining operational support, technology, and growth resources, to build firms that not only serve clients better but also command the type of valuation multiples the market increasingly rewards. By aligning with OneSeven, advisors can move from the single-digit range into the 20x reality.
Click here to read our latest Whitepaper – The 20x Multiple Reality
[2] DealFlow OS
[3] Fidelity
