What Drives Premium Valuations in RIA M&A Today?

RIA founders considering a transaction often ask the same question: “What’s my firm worth?” In 2025’s active deal market, valuation isn’t just about assets under management—it’s about what drives durable value.

Here’s what sets premium deals apart:

Scale
Larger firms command higher multiples due to operating leverage and integration efficiency. Sub–$1B AUM firms can still compete—if they demonstrate platform potential.

Growth
Buyers are rewarding organic growth and net new asset inflows. Sustainable growth signals market relevance and future upside.

Leadership Depth
A strong, stable management team—especially with next-gen bench strength—reduces transition risk and supports long-term scalability.

Operational Maturity
Clean financials, institutional processes, and a well-documented client experience model all contribute to higher buyer confidence—and valuation.

The takeaway? Valuation is a reflection of both what you’ve built and how well you’ve prepared for what’s next.

At Colonnade Advisors, we help RIA owners identify and unlock the strategic value in their firms—well before the LOI.

📘 Download our latest whitepaper for a deeper dive into the trends shaping RIA M&A in 2025.