For years, independence was the destination for many advisors. But as the RIA industry has matured, the dynamics of growth are changing.
Recent industry research and M&A data suggest:
• 83% of RIAs cite limited resources and capacity as barriers to growth.
• Advisors spend just 7% of their time on business development.
• Team-based practices generate more than 2x the organic growth of solo practices.
For many RIAs, scale can help address these challenges through greater access to specialized talent, technology, marketing and business development resources.
The same may be true for inorganic growth.
Only 8% of RIA buyers in 2025 were first-time acquirers, as acquisition activity increasingly favors experienced, well-capitalized buyers.
Taken together, the data point to a broader shift: both organic and inorganic growth are increasingly favoring firms with greater scale and resources.
For smaller RIA owners, that doesn’t make independence any less valuable. But it does make evaluating the potential advantages of scale increasingly important.