Crash test: How RIAs can survive the next recession
1. Get Out While You Still Can
Valuations for RIAs are approaching their pre-financial crisis highs, according to David DeVoe, managing parter at RIA M&A consultancy DeVoe & Company. RIAs looking to sell can command between 4x and 6x cash flow for an $100 million firm, 5.5x to 7x for a $500 million firm, and as much as 9.5x cash flow for a $1 billion firm, DeVoe said.