Schwab Advisor Services Releases Industry-Wide RIA Merger & Acquisition Activity for Year End 2012

SAN FRANCISCO--(BUSINESS WIRE)--According to industry-wide independent registered investment advisor (RIA) mergers and acquisition data compiled by Schwab Advisor Services, 2012 closed with a thirty percent increase in the total value of M&A transactions year over year. The assets under management of the 45 deals completed in 2012 totaled $58.8 billion versus $43.9 billion for the 57 deals in 2011.

“National acquiring firms are proving to be a good overall alternative for the growth of the industry, attractive to both advisors that are looking to join the move to independence or RIAs that are seeking to expand their footprint or execute a succession strategy”

“The independent model has become a destination of choice for both advisors and high-net-worth investors alike, and the growth in the overall size of the deals we saw in 2012 is proof that this is a model that is growing and flourishing,” said Jon Beatty, senior vice president, sales and relationship management, Schwab Advisor Services. “It also points to a new inflection point for the industry, as RIAs appear to be actively considering M&A as a way to grow their business, and as a component of their succession planning efforts.”

National Acquiring Firms Continue to Lead M&A Deal Flow

National Acquiring Firms remained the dominant buyer category, finishing the year with 25 of the 45 total M&A deals. Meanwhile, the proportion of acquisitions by RIAs dropped in 2012, down from 44 percent of the total deals closed in 2011 to 20 percent of those completed in 2012.

“National acquiring firms are proving to be a good overall alternative for the growth of the industry, attractive to both advisors that are looking to join the move to independence or RIAs that are seeking to expand their footprint or execute a succession strategy,” said Beatty.

Activity among National Acquiring Firms remained high for the third consecutive quarter in 2012, representing 55 percent of the deals completed throughout the year.

Schwab Advisor Services’ quarterly RIA M&A report is provided as part of the firm’s continued commitment to advancing the interests of RIAs across the business lifecycle. This includes supporting advisors through each phase of the process of starting, running, growing and exiting a business.

About Schwab Advisor Transition Services™

Schwab Advisor Transition Services helps advisors think through growing and exiting a business at the right time, with the right people and at the right value. This includes goal setting, evaluating options (internal succession, external sale, and merger or acquisition) and executing a transition plan.

Schwab’s Transition Services includes Schwab’s M&A Listing Service, an online database offered to independent registered investment advisors that custody with Schwab Advisor Services. The service connects advisor firm buyers and sellers and enables advisors to maintain anonymity while soliciting interest and collecting information from other advisor firms on acquisition, mergers, or sales. Buyers also can search for investment professionals with books of business who would like to join an RIA firm.

Additional information and new transitions content are available at www.SchwabTransition.com¹

About Charles Schwab

The Charles Schwab Corporation (NYSE:SCHW) is a leading provider of financial services, with more than 300 offices and 8.8 million active brokerage accounts, 1.6 million corporate retirement plan participants, 865,000 banking accounts, and $1.95 trillion in client assets as of December 31, 2012. The company was ranked ‘Highest in Investor Satisfaction With Self-Directed Services’ in the 2012 US Self-Directed Investor Satisfaction Study^SM from J.D Power and Associates. Through its operating subsidiaries, the company provides a full range of securities brokerage, banking, money management and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, www.sipc.org), and affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; compliance and trade monitoring solutions; referrals to independent fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through its Advisor Services division. Its banking subsidiary, Charles Schwab Bank (member FDIC and an Equal Housing Lender), provides trust and custody services, banking and lending services and products. More information is available at www.schwab.com and www.aboutschwab.com.

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All data compiled and analyzed by Schwab Advisor Services. Data reflects firms being sold with assets under management exceeding $50 million as of December 31, 2012.

¹ The information provided on the Site is for general information purposes only and is not intended to provide specific financial, accounting, tax, legal, or regulatory advice. Schwab makes no representations as to the accuracy or appropriateness of the information for any given situation.

Schwab may limit what can be listed on the M&A Listing Service. Buyer listings and Career Opportunity listings are generally, but not always, limited to independent investment advisors that custody their clients' assets with Schwab Advisor Services. Schwab Advisor Services may further limit Buyer listings and Career Opportunity listings to those of its clients with whom it has favorable business prospects. Schwab Advisor Services has a financial interest in, and compensation received by Schwab Advisor Services personnel is affected by, the retention and growth of assets custodied at Schwab Advisor Services. This may incent Schwab Advisor Services to decline some proposed Buyer and Career Opportunity listings.

Independent investment advisors are not owned by, affiliated with or supervised by Schwab.