Navigating RIA Consolidation in an Era of Overvaluation
Authored by: Jeff Nash, Founder & CEO, Bridgemark Strategies
Since we’re in the midst of the “Spooky Season,” it seems apropos to delve into some of the strange goings on in the RIA space – though these outside-the-norm trends we’re seeing did not just emerge with last month’s Harvest Moon. Outside forces, such as market and economic uncertainty, along with industry-specific headwinds including demographic challenges and a looming advisor shortage, have driven what I consider unusual, but not unprecedented, behavior.
As scary as it may seem, the current environment brings me back to the dot com era. While I do not foresee a similar implosion in wealth management – another “dot bomb” if you will – it’s important to shine a spotlight on the current valuation inflation we’re seeing in the RIA space and consider its impact on industry participants and on the overall health of the industry in general.
