While acquiring RIAs to expand their reach, RIA aggregators face challenges in realizing significant returns solely through AUM accumulation. According to Financial Advisor News, historical trends suggest that relying exclusively on combining individual RIA profits and mitigating expenses may not lead to the desired financial outcomes for aggregators and their backers.

A recent survey of RIAs that sold their practices reveals that a significant majority did so to grow their practices. However, dissatisfaction with the outcomes was prevalent among those who sold, indicating a gap between expectations and reality.

For RIA aggregators, dissatisfaction among acquired RIAs can lead to conflicts and potential exits from the arrangement, undermining the aggregator's growth objectives. Aggregators must actively support organic growth initiatives within acquired firms to mitigate such risks.

Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.