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Wealth RIA Business Valuation in 2026: 5-15x EBITDA by AUM Band, Plus a Worked $250M AUM Example

Buy-side M&A across 100+ active capital partners · Wealth management M&A: RIAs, hybrid advisors, multi-family offices · Updated June 24, 2026

Wealth management business valuation in 2026 is fundamentally a recurring-revenue math exercise: AUM times blended fee equals revenue, revenue times margin equals EBITDA, EBITDA times multiple equals enterprise value, and every step is judged against the buyer pool of roughly 50 well-capitalized RIA aggregators. The ria business valuation framework that buyers actually apply weighs AUM scale, fee structure, organic growth rate, advisor age curve, custodian relationship, and second-generation bench depth far more than the lifestyle income the founder pulls out today. This guide walks through the AUM-fee-multiple math, decomposes the four primary RIA business models, identifies the six factors that move multiples, and applies the framework to a worked $1.5M EBITDA / $250M AUM California RIA example. A deeper read on who buys RIAs in 2026 covers the cap-table of active acquirers.

Methodology and data sources

Related Cluster GuideSibling professional-services benchmark: see the full cap-table of who buys RIAs in 2026, since the aggregator universe overlaps materially with adjacent financial-services consolidators.

This valuation guide follows CT Acquisitions’ 5-tier source hierarchy: T1 press releases for major sponsor or platform transactions, T2 SEC ADV filings of registered investment advisers, T3 sponsor portfolio pages, T4 industry-research publishers (Echelon Partners, DeVoe & Company, Cerulli Associates, Fidelity M&A Quarterly, Schwab RIA Benchmarking Study, BARS Group, Discovery Data), and T5 M&A trade press (RIABiz, Citywire, WealthManagement.com, ThinkAdvisor, Financial Advisor IQ). Every numeric multiple range cited on this page is reconciled against at least two T4 sources plus CT Acquisitions’ internal VERIFIED_MULTIPLES benchmark.

Tier framing: Headline multiple ranges reflect broad-market mid-market RIA transactions. Premium aggregator-tier multiples (where cited) reflect institutional-buyer underwriting on firms that clear specific AUM scale, organic-growth, fee-structure, client-retention, and second-generation bench thresholds; they are not universally available and require platform-quality operator characteristics.

Verification window: All multiples and AUM-tier figures verified June 2026 against the named T4 publishers’ most-recent reports plus CT’s active-engagement data. Multiples by tier are sensitive to credit-market conditions, custodian dynamics, fee-compression pressure, and regulatory shifts; the cited ranges are starting points for transaction-specific valuation, not deal-specific quotes.

RIA-specific industry-data sources: Echelon Partners RIA M&A Deal Report (annual, with quarterly updates), DeVoe & Company RIA Deal Book (annual), Cerulli US RIA Marketplace, Fidelity Wealth Management M&A Quarterly, and Schwab RIA Benchmarking Study (Schwab Advisor Services). SEC Form ADV Part 1A is the primary AUM and client-count source; sellers should pull current Form ADV filings rather than firm websites for verified figures. The CT VERIFIED_MULTIPLES RIA lock is 5x-15x EBITDA depending on AUM band, fee mix, and growth profile.

The short answer: typical ria business valuation ranges in 2026

*Platform tier reflects publicly disclosed PE-backed RIA aggregator transactions; see Mercer Advisors (Genstar Capital + Oak Hill + Altas), Captrust Financial Advisors (GTCR + Carlyle), Creative Planning (TPG + General Atlantic), and Wealth Enhancement Group (Onex + TA Associates) deal histories. These multiples apply only to platform-quality firms (multi-billion AUM, proven organic growth, institutional management). On valuation specifically, our deeper read on selling your RIA covers the methodology buyers actually apply.

The four RIA business models

Before any wealth management business valuation analysis, identify which of these four models describes your firm. Buyers price each very differently because the recurring revenue quality, regulatory exposure, and integration friction vary materially.

1. Fee-only RIA (pure fiduciary)

SEC or state-registered advisor charging recurring AUM-based fees (typically 50-110 bps blended), with no commission revenue and no broker-dealer affiliation. Custody at Schwab, Fidelity, or Pershing. Margins: 25-40% EBITDA at mid-size, scaling to 45-50% at $1B+ AUM. Most valuable RIA model. Aggregators (Mercer Advisors, Mariner Wealth Advisors, Beacon Pointe Advisors, Captrust, Creative Planning, Wealth Enhancement Group, Hightower, Carson Wealth, EP Wealth, Edelman Financial Engines) specifically target this segment. Valuations 7-13x EBITDA depending on scale and growth.

2. Hybrid RIA (RIA plus broker-dealer)

Advisor registered with both an RIA (for fee-based AUM accounts) and a broker-dealer (for commissionable products). Common with LPL Financial, Raymond James, Cetera, and Commonwealth Financial Network. Revenue split varies widely. The commission revenue trades at a discount to AUM fee revenue because it is product-driven rather than relationship-driven and carries more regulatory tail risk (FINRA arbitration exposure). Valuations 5-8x EBITDA on the blended business, with buyers often willing to pay separately for the fee-based book.

3. Multi-family office

Comprehensive wealth management for ultra-high-net-worth families ($25M+ typical minimums, $100M+ at top tier). Services beyond investment management: tax planning, estate planning, philanthropy, family governance, bill pay, concierge. Fee structures are AUM-based but often layered with retainer or hourly fees. Margins compressed by service intensity (15-30% EBITDA at lower AUM, scaling to 30-40% at $5B+). Valuations 10-14x EBITDA; the buyer pool is narrower but pays premium for the ultra-HNW client relationships.

4. Specialty practice (401(k), institutional, retirement plan consulting)

Practices focused on 401(k) plan advice, defined-benefit consulting, or institutional asset management. Often dually registered. Revenue is recurring but driven by plan-sponsor relationships rather than household advisory. Margins 20-30%. Valuations vary widely: 5-10x EBITDA depending on plan-sponsor concentration, recurring-revenue quality, and 3(38) versus 3(21) fiduciary positioning.

Most RIAs are some blend of these four. A firm with 80% fee-only AUM advisory + 20% retirement plan consulting is valued primarily as a fee-only RIA. A firm flipping that mix is valued primarily as a specialty practice. Cleanly classify the revenue before applying any multiple.

AUM x fee x multiple: the math buyers run

The core ria business valuation math is straightforward but worth running explicitly:

AUM x blended fee = Revenue. Revenue x EBITDA margin = EBITDA. EBITDA x multiple = Enterprise value.

Worked through with industry-average inputs:

• $500M AUM x 95 bps blended fee = $4.75M revenue. The 95 bps reflects a typical fee schedule of 100 bps on the first $1M, 80 bps on the next $4M, 65 bps above $5M, weighted across a client base with average household size of $1.5M.
• $4.75M revenue x 32% EBITDA margin = $1.52M EBITDA. The 32% margin reflects fee-only operating expense ratio of 68% (advisor compensation, support staff, technology, real estate, custodian fees).
• $1.52M EBITDA x 9.0x = $13.7M enterprise value. The 9.0x reflects a $500M AUM fee-only firm with G2 bench, 96% client retention, 4% organic growth, and clean fiduciary positioning.

The revenue multiple back-check: $13.7M / $4.75M = 2.88x revenue, well within the 2.5x-3.0x band for this tier.

The fee yield matters more than founders realize. A firm with $500M AUM at 110 bps blended fee runs $5.5M revenue vs $4.75M at 95 bps. At the same 32% margin, that is $1.76M EBITDA vs $1.52M, a 16% EBITDA difference that flows straight through to enterprise value. Documenting fee yield (and defending it against fee-compression diligence) is one of the highest-impact pre-sale exercises.

How buyers run the ria business valuation calculation

1. Normalize the EBITDA. Adjust for owner compensation (replace at market rate, typically $250K-$400K for a senior advisor depending on geography), related-party transactions, personal expenses, non-recurring legal or compliance costs, and any one-time custodian transition expense.
2. Decompose the revenue. Split AUM fee revenue from financial planning fee revenue from commission revenue from project work. Aggregators apply a different multiple to each stream.
3. Analyze the client book. Top 25 client review: AUM per household, tenure, fee schedule, age, relationship-holder (founder vs G2), referral source. This is the most intensive part of RIA diligence.
4. Model organic growth. Split trailing-3-year revenue growth into market performance lift (using S&P 500 or relevant benchmark), net new client growth, share-of-wallet growth from existing clients, and lost clients. Aggregators pay premium for organic growth (net new assets) and discount market lift.
5. Compare to comparables. Cross-reference Echelon Partners RIA M&A Deal Report, DeVoe & Company RIA Deal Book, and Fidelity Wealth Management M&A Quarterly. Adjust for geography, fee structure, and growth profile.
6. Apply the concluding multiple and structure. Most RIA aggregator deals are not 100% cash at close. Typical structure: 60-75% cash at close, 15-25% rollover equity in the aggregator, 10-20% earn-out tied to client retention and revenue retention over 2-3 years. The headline multiple and the cash-at-close multiple are different numbers.

Six factors that move your ria business valuation multiple

1. AUM scale

Scale is the first filter aggregators apply. Sub-$250M AUM is a personal practice; the buyer universe narrows to other RIAs and individual successor advisors. $250M-$500M AUM opens up smaller aggregators and family-office acquirers. $500M-$1B AUM is the sweet spot for most mid-market aggregators. $1B+ AUM commands the institutional buyer pool (Mercer, Captrust, Creative Planning, Wealth Enhancement Group, Beacon Pointe, Mariner) where multiples step up materially. $3B+ AUM is platform-quality and commands the top of the range. Scale alone moves the multiple 2-4 turns from low to high.

2. Fee structure (recurring AUM mix)

Within total revenue, the share that is recurring AUM-based fee matters more than total revenue:

• Premium book: 92%+ recurring AUM fees, 5-8% financial planning fees, 0% commissions, blended fee 90-105 bps.
• Good book: 80-92% recurring AUM fees, 8-15% planning fees, less than 5% commissions, blended fee 80-95 bps.
• Average book: 65-80% AUM fees, 15-25% planning fees, 5-15% commissions, blended fee 70-90 bps.
• Weak book: Less than 65% AUM fees, heavy planning or commission mix, fee yield below 70 bps.

Buyers will rebuild this analysis in diligence using SEC Form ADV Part 2A and internal billing records. Detailed, accurate fee documentation is non-negotiable for premium aggregator pricing.

3. Organic growth rate

Organic growth (net new assets, excluding market performance) is the second-most-watched RIA metric after AUM scale:

• 10%+ organic growth: Premium aggregator territory. Buyers compete; multiple expands 1-2x.
• 6-10% organic growth: Healthy. Solid multiple within band.
• 3-6% organic growth: Average; in line with Schwab RIA Benchmarking Study median.
• 0-3% organic growth: Mature; multiple anchored at lower end of band.
• Negative organic (net AUM losing without market lift): Major discount. Buyers structure heavily around retention.

Aggregators care about organic growth because they are buying client acquisition engines, not run-off books. Schwab RIA Benchmarking Study reports median net organic growth of around 5% over the last several years; firms consistently above that command premium.

4. Advisor age demographic and G2 bench

Cerulli Associates reports approximately 38%-39% of US financial advisors are over age 55, controlling 41%-42% of industry AUM. The successor question is structural. Buyers evaluate:

• Strong G2 bench: Two or more advisors under 50 with documented relationships to top 20 clients, equity participation, and signed non-competes. Multiple holds or expands.
• Some G2 in place: One advisor under 50, building relationships but founder still primary. Multiple in band.
• Founder-dependent: Top 20 clients all founder relationships, no advisor under 55 with succession path. Multiple discount of 1-2 turns; aggressive earn-out structure.
• Solo founder, no successor: Limits buyer pool to individual successor advisors or full-asset-purchase liquidation deal. Multiple often 50%+ below band.

5. Custodian relationship and operational platform

Custodian choice and technology stack matter for integration friction:

• Schwab Advisor Services: Largest US custodian post Schwab-TD Ameritrade conversion (completed September 2023). Most aggregators are Schwab-native; integration is straightforward.
• Fidelity Institutional: Second-largest. Many aggregators dual-custody Schwab and Fidelity; clean integration.
• Pershing (BNY Mellon): Common for hybrid RIAs and larger family offices. Integration friction varies.
• Smaller or self-clearing custodians: Material conversion cost ($50K-$300K plus 30-90 days of operational disruption). Buyers price this in.

Tech stack: Orion, Black Diamond (SS&C Advent), Tamarac (Envestnet), Addepar, eMoney, MoneyGuidePro, Salesforce Financial Services Cloud, Redtail. Modern integrated stack with clean data is expected; legacy desktop tools or paper-based files trigger a discount.

6. Client retention and tenure

• Premium: 97%+ annual client retention, weighted average tenure 8+ years, less than 15% revenue concentration in top 10 clients.
• Good: 95-97% retention, 5-8 year tenure, 15-25% top-10 concentration.
• Average: 92-95% retention, 3-5 year tenure, 25-35% concentration.
• Weak: Below 92% retention, short tenure, more than 35% concentration. Material discount.

Other factors buyers evaluate

Compliance history and Form ADV

Clean Form ADV history, no disclosed regulatory actions, no FINRA arbitrations on the hybrid side, current SEC or state registration in good standing. Material disclosures (even resolved) trigger expanded compliance diligence and can compress multiple by 0.5-1.0x.

Advisor designations (CFP, CFA, CPWA)

CFP, CFA, CPWA, ChFC designations across the advisor bench signal professionalism and reduce buyer risk. Aggregators specifically look for CFP coverage on at least the lead advisors. Not deterministic of multiple but reduces diligence friction.

T+1 settlement and operational readiness

SEC T+1 settlement (effective May 28, 2024) shortened the trade settlement cycle from two business days to one. Firms with modern reconciliation and trading workflows handled the transition cleanly; those still on legacy operational processes faced material rework. Buyers ask how the firm handled T+1 as a proxy for operational maturity.

Investment philosophy and model portfolios

Centralized model portfolios (advisor manages to firm-level models) versus advisor-managed accounts (each advisor builds their own). Centralized model approach trades at a premium because it is more scalable and easier to integrate into aggregator platforms. BARS Group and Discovery Data benchmarks track this.

Geographic footprint

Single-office firms in major metros (California, New York, Texas, Florida, Illinois, Massachusetts) trade at a premium because the buyer pool is denser. Single-office firms in tertiary markets have a narrower buyer pool. Multi-office firms with regional density can command premium aggregator pricing.

Financial planning fee revenue

Some firms charge separate financial planning fees (project-based or retainer). At reasonable mix (5-15% of revenue), this is neutral to positive. Above 20% of revenue, buyers start to treat it as a separate stream with a lower multiple than AUM revenue.

Worked example: $1.5M EBITDA $250M AUM RIA in California (3 advisors)

Firm profile:

• $250M AUM, $2.55M revenue (102 bps blended fee), $1.5M reported EBITDA (59% margin, high because founder takes below-market comp)
• Revenue mix: 88% recurring AUM fees, 10% financial planning fees, 2% miscellaneous (no commissions, fee-only RIA)
• 3 advisors: founder age 61 (CFP, CFA), G2 advisor age 44 (CFP), junior advisor age 32 (CFP track)
• 180 client households, weighted average tenure 9.5 years, 96.5% annual retention, top 10 clients = 28% of revenue
• Organic growth: 4.5% trailing 3-year average net new assets (excluding market lift); total revenue growth 11% including market
• Custody: Schwab Advisor Services (clean post-TD Ameritrade conversion)
• Tech stack: Orion + Salesforce Financial Services Cloud + eMoney; 4 years on platform with clean data
• Founder owns 100% equity; G2 advisor on 5% phantom equity vesting
• Northern California (Bay Area); single office, 8 total FTEs
• Founder comp $200K (below market for $250M AUM senior advisor; market is $325K). Personal expenses $35K through firm. One-time legal $20K from ADV update.

EBITDA normalization:

• Reported EBITDA: $1.5M
• Owner compensation adjustment: $200K to $325K market rate = $125K reduction
• Add back personal expenses: +$35K
• Add back one-time legal: +$20K
• Normalized EBITDA: $1.43M

Multiple assessment:

• Starting benchmark for $250M AUM fee-only RIA with G2 bench: 7.0x
• +0.3x for clean fee-only structure (88% recurring AUM, zero commissions)
• +0.2x for 96.5% client retention and 9.5-year average tenure
• +0.3x for Schwab-native custodian and modern Orion + Salesforce stack
• +0.2x for California major-metro location (denser buyer pool)
• -0.4x for founder dependency on top 10 clients (relationships not yet transitioned to G2)
• -0.3x for 28% top-10 concentration (above 25% threshold)
• -0.2x for 4.5% organic growth (slightly below 5%+ median)
• Concluding multiple: 7.1x

Indicative valuation: $1.43M x 7.1x = $10.15M enterprise value

Typical deal structure for this profile:

• 65% cash at close: $6.6M
• 20% rollover equity in acquirer: $2.0M
• 15% earn-out over 3 years tied to client retention and revenue retention: $1.5M

18-month improvement path:

• Transition top 10 client relationships to G2 advisor (formal hand-off plan, joint meetings, G2 as primary on financial planning deliverables): multiple to 7.5x. Outcome: $10.7M.
• Grow organic growth to 6%+ through dedicated client referral program and centers-of-influence development: multiple to 7.8x. Outcome: $11.2M.
• Reduce top-10 concentration to 22% via planned new-client acquisition: multiple to 7.6x. Outcome: $10.9M.
• Combined: plausible multiple 8.2x. Outcome: $11.7M enterprise value.

$1.5M-$1.7M delta over 18 months of preparation, plus better deal structure (higher cash-at-close, smaller earn-out) because founder-dependency risk is materially lower.

How to increase your RIA value before selling

Highest ROI

• Build a second-generation advisor bench. Hire or develop 1-2 advisors under 50, give them equity participation (real equity or phantom), and formally transition top-25 client relationships. 24-36 months runway is realistic.
• Drive organic growth above 6%. Centers-of-influence (CPA, estate attorney, business broker) referral programs, written client referral incentives, content marketing, and (where appropriate) a dedicated business-development hire. Schwab RIA Benchmarking Study reports the median is around 5%; firms above that command premium.
• Reduce client concentration. If top 10 clients are above 25% of revenue, plan a structured new-client acquisition campaign or strategic outreach to existing client family members.
• Defend or modestly expand fee yield. Most RIA fee schedules have not been updated in 5+ years; review billing across the client base. A 5-10 bp improvement in blended fee yield flows straight to EBITDA.
• Centralize investment models. Move from advisor-managed accounts to firm-level model portfolios with documented investment committee process. Materially improves aggregator integration economics.

Medium ROI

• Upgrade tech stack to Orion, Black Diamond, or Tamarac if still on legacy desktop tools.
• Confirm CFP coverage on all lead advisors; CFA or CPWA for the senior advisor.
• Document compliance history and clean up any Form ADV disclosures.
• Build financial planning fee revenue as a complement to AUM (5-15% of revenue is the sweet spot).
• Add or formalize ancillary services (tax planning, estate planning coordination) that justify fee defense.

Lower ROI

• Website redesign.
• Social media presence.
• Office relocation or expansion.

Common mistakes that destroy ria business valuation outcomes

• Founder controls every top client relationship. The single largest discount in RIA deals. Aggregators structure aggressive earn-outs around founder retention or compress multiple by 1-2 turns.
• Confusing market lift with organic growth. Buyers will rebuild the organic-growth calculation using S&P 500 performance as the benchmark. Inflated growth claims get caught in week two of diligence.
• Heavy commission revenue mix without acknowledging the discount. Founders quote a blended multiple; buyers value AUM fees and commissions at very different multiples.
• Underestimating custodian transition friction. If the firm is on a non-Schwab, non-Fidelity custodian, the conversion cost is a real diligence line item.
• Compliance gaps in Form ADV. Material disclosures (even old, resolved) trigger expanded diligence and can compress multiple.
• Solo-advisor firms shopping to PE-backed aggregators. Aggregators rarely buy solo practices; the right buyer pool is other RIAs or individual successor advisors.
• Not modeling rollover equity at fair value. Aggregator stock at illiquid private valuations is not the same as cash. Sellers need to underwrite the rollover equity component.
• Treating financial planning fees as recurring without retainer documentation. Project-based planning revenue is not recurring; aggregators rebuild the classification.

Getting a valuation for your RIA

CT Acquisitions offers confidential valuations for RIA founders. We specialize in fee-only RIAs in the $250M-$3B AUM range with $750K-$15M EBITDA. CT Acquisitions is paid by the buyer at close; founders pay nothing. Book a 15-minute conversation or use our free valuation tool for a starting range.

About the Author

Christoph Totter is the founder of CT Acquisitions, a buy-side partner headquartered in Sheridan, Wyoming. We work directly with 100+ buyers, search funders, family offices, lower middle-market PE, RIA aggregators, and strategic consolidators, including direct mandates with the largest wealth-management consolidators that other intermediaries cannot access. The buyers pay us when a deal closes, not the seller. No retainer, no exclusivity, no contract until close. Connect on LinkedIn · Get in touch

Sources and references

Every multiple range, AUM-tier figure, and industry-data citation on this page is sourced to a published industry-research publisher or to CT Acquisitions’ internal benchmark dataset.

• Echelon Partners: RIA M&A Deal Report (annual and quarterly) – 269 announced RIA M&A transactions in 2024, deal flow climbing through 2025.
• DeVoe & Company: RIA Deal Book (annual) – 272 deals tracked in 2024 with median seller AUM around $1.7B.
• Cerulli Associates: US RIA Marketplace – 38%-39% of US advisors over age 55 controlling 41%-42% of industry AUM.
• Schwab RIA Benchmarking Study – median net organic growth, advisor compensation benchmarks, fee schedule analysis.
• Fidelity Wealth Management M&A Quarterly – aggregator deal activity and buyer cohort analysis.
• BARS Group and Discovery Data – RIA benchmark databases for revenue per advisor, AUM per FTE, and fee-yield analysis.
• SEC Form ADV Part 1A and 2A – primary AUM, client-count, and fee-schedule source for all SEC-registered RIAs.
• CT Acquisitions VERIFIED_MULTIPLES dataset – locked-in vertical-specific multiple ranges reconciled against the above sources; updated quarterly.

Last verified: June 24, 2026. Next refresh: quarterly (target 2026-09-24).

Disclaimer: This guide is general valuation framework intelligence, not legal, tax, accounting, or transaction advice. CT Acquisitions is a buy-side advisor.

Ria business valuation multiples: quick reference

RIA valuation multiples typically run 1.5x to 3x revenue or 5x to 15x EBITDA depending on AUM band, fee structure, organic growth, and second-generation bench. The single biggest driver is recurring AUM-based fee revenue: a firm with 90%+ recurring AUM fees trades materially higher than a hybrid practice with heavy commission mix.

The factors that move an ria business valuation most are AUM scale, recurring AUM fee mix, organic growth rate, second-generation advisor bench, custodian relationship cleanliness, and client retention. Building a transferable, multi-advisor firm is the most reliable way to lift the multiple.

Frequently asked questions about ria business valuation

What is the average RIA multiple in 2026?

Across all RIA transactions, the simple average is roughly 8x-10x EBITDA, but the range is wide. Sub-$500M AUM firms trade at 5x-8x EBITDA. $500M-$1B AUM fee-only firms trade at 8x-11x EBITDA. $1B+ AUM firms with documented organic growth and G2 bench command 10x-15x EBITDA. Per Echelon Partners and DeVoe & Company 2024 data, the sub-category and scale matter more than the headline average.

How is an RIA valued?

The standard wealth management business valuation framework is: normalize EBITDA (adjust owner compensation to market, add back personal expenses and one-time items), decompose revenue (separate recurring AUM fees from planning fees from commissions), analyze the client book (top 25 review for tenure, retention, concentration, relationship-holder), model organic growth (split out market lift), and apply the multiple by AUM band and fee structure. Revenue multiples (1.5x-3x) are a back-check; EBITDA multiples are the primary input.

What is my RIA worth at $250M AUM and $1.5M EBITDA?

Indicative range: $9M-$12M enterprise value at a 6x-8x EBITDA multiple. The exact number depends on fee-only versus hybrid mix, G2 advisor bench depth, client concentration, organic growth, and California versus tertiary-market geography. Deal structure (cash vs rollover equity vs earn-out) typically lands at 60-75% cash at close.

What is my RIA worth at $1B AUM?

Indicative range: $80M-$130M enterprise value depending on margin (35%-50% EBITDA typical at $1B+ scale) and multiple (10x-13x for clean fee-only with G2 bench and organic growth). A $1B AUM firm at 100 bps blended fee generates $10M revenue; at 40% EBITDA margin, $4M EBITDA; at 11x, $44M enterprise value at the low end, ranging up to $52M+ at 13x.

Do RIA aggregators pay all cash?

No. Typical aggregator deal structure: 60-75% cash at close, 15-25% rollover equity in the aggregator (illiquid private stock), 10-20% earn-out over 2-3 years tied to client retention and revenue retention. The headline multiple and the cash-at-close multiple are different numbers; sellers should evaluate both.

How does organic growth affect my RIA valuation?

Materially. A firm growing at 8% organic (net new assets excluding market lift) trades 1.5x-2.0x higher than a firm growing at 2% organic, all else equal. Aggregators are buying client acquisition engines, not run-off books. Schwab RIA Benchmarking Study reports the median organic growth is around 5%; firms consistently above that command premium.

Does fee-only versus hybrid affect valuation?

Yes. Fee-only RIAs (pure fiduciary, no commissions, no broker-dealer) trade at 8x-13x EBITDA. Hybrid RIAs (RIA plus broker-dealer commissions) trade at 5x-8x EBITDA on the blended business because commission revenue is product-driven and carries more regulatory tail risk (FINRA arbitration exposure). Buyers will often value the fee-based book and the commission book separately.

How important is the G2 advisor bench?

Critical. A solo advisor with $400M AUM is a personal practice, not a transferable business; aggregators discount heavily or structure aggressive earn-outs. A firm with two advisors under 50 holding documented relationships with the top 20 clients and signed non-competes trades 1-2 multiple turns higher. Cerulli reports 38%-39% of advisors are over 55, so this is a structural issue across the industry.

What custodian do I need to be on for the best valuation?

Schwab Advisor Services (largest US RIA custodian, especially post Schwab-TD Ameritrade conversion completed September 2023) and Fidelity Institutional are the two most aggregator-friendly. Pershing (BNY Mellon) is common for hybrid RIAs and larger family offices. Smaller or self-clearing custodians carry $50K-$300K conversion cost and 30-90 days of operational disruption, which buyers price in.

How long does it take to sell an RIA?

90-150 days from LOI to close for a well-prepared fee-only RIA. Preparation runway is 12-36 months depending on starting position (especially around G2 bench development). Client consent and ADV amendment timing can extend the close window. Deal-specific custodian transition (if buyer requires) adds 30-60 days post-close.

How much will I pay in taxes on the sale?

Federal long-term capital gains plus 3.8% NIIT on the goodwill portion. State taxes vary materially (California at top marginal rate adds materially to the federal). Structural planning (rollover equity treated as continuation of investment, installment-sale treatment on earn-out) can reduce effective rate. See our complete selling playbook.

What is the best time of year to sell an RIA?

Aggregators run year-round but LOI activity concentrates in Q2 and Q4. Most sellers prefer to close in Q4 to capture a clean trailing-12-month period including a full year of market performance and to coordinate with year-end tax planning. Preparation runway means most sellers initiate the process 12-18 months before targeted close.

Should I take rollover equity in an aggregator?

Depends on the aggregator’s growth trajectory, your liquidity needs, and the equity valuation. Rollover equity in fast-growing platforms (Mercer Advisors, Captrust, Wealth Enhancement Group, Mariner) has generated meaningful returns for prior sellers when the platform recapitalizes or goes public. Equity in slower-growth platforms can underperform straight cash. Underwrite the platform like a private equity investment, not a paper currency.

Related resources

• Sell your RIA: buyer landscape and process
• Who buys RIAs: 2026 aggregator cap-table
• How to Sell a Service Business (full playbook)
• Free RIA valuation tool
• CT Acquisitions: how we work