Good Time to Be a Seller, Sort Of

Tibergien worries, however, about "quite a few" advisors who "have not taken the steps to build value over the past few years who may be burned out or bored," and look at the attractive current marketplace for RIA firms as an opportunity simply "to get out." He warns that the value for such firms "will not be as great as those who have positioned themselves well for growth."

Tibergien points out that the slight increase in multiples may well reflect acquisitions of some "pretty high-quality firms where people are willing to pay a premium," particularly if the acquirer believes there is some synergy involved.

That brings up another change in the M&A market place. In the earlier study, banks were the most active acquirers. More recently, the most active are what Moss Adams calls "serial buyers," financially motivated firms such as National Financial Partners, Focus Financial, United Capital, and Mesa Holdings, which acquire a number of firms over time, often using stock in the acquiring firm (which may well go public some day) to pay for a good chunk of the acquired firm.