Another day, another M&A deal in wealth management. And fresh data shows just how vigorous the market for transactions is.

Mercer Global Advisors, one of a number of acquisition-hungry RIA players, has bought Miller Advisors, a business based in Kirkland, Washington, serving about 200 clients and collectively holding more than $240 million in assets.

Miller was founded by Kathleen Miller, who is joined by her daughter Nicole Miller. The firm serves high net worth individuals, families and their businesses, and planning for divorcing couples. The entire Miller team will also join Mercer Advisors.

Denver-based Mercer Global Advisors is not just a business that acquires other wealth firms; it is also majority owned by Oak Hill Capital and Genstar Capital.

The acquisition is another example of vigorous M&A activity in North America over recent years. Breakaway teams forming RIAs have in some cases realized that they need to partner with other firms to achieve economies of scale, as do the acquirers. Some RIA owners nearing retirement are seeking business exits, while rising regulatory costs and client expectations are also driving the M&A process.

Mercer has been busy. In March, the firm agreed to buy California-based Epstein & White Financial. In January this year, it bought Marrs Wealth Management, a firm in Ames, Iowa. Marrs serves about 275 clients with assets under management of approximately $215 million. Mercer recently bought Hart Capital Management, a firm based in the northwest and Idaho, overseeing about $440 million of client money. It has also acquired Pinnacle Wealth Solutions, a firm based in Midlothian, Virginia. Earlier in January it bought a woman-owned wealth management business – McGee Wealth Management, based in Portland, Oregon ($815 million AuM). In January, it also bought Atlanta Financial Associates.

Mercer’s announcement came on the same day that DeVoe & Company, a business tracking such activity, noted that RIA transactions have eclipsed the 2020 full year activity of 159 deals with a full 95 days left in the year. With this new high watermark, 2021 is officially the eighth successive record year of RIA M&A activity.

DeVoe said that from a quarterly perspective, the third quarter will also set a new high. With 59 transactions and a few days to go, Q3 has surpassed the standing record of 58 transactions in a quarter set in Q1 2021. 

“The amount of M&A activity and interest in transactions among advisors is truly unprecedented,” David DeVoe, founder and CEO, DeVoe & Company, said. “High valuations, a newfound focus on solving succession and achieving scale, and concerns about looming tax increases are driving an acceleration of external sales.”

This news service's editor, Tom Burroughes, recently discussed some of the M&A and wider industry trends in a podcast with Dentons, the law firm, here.