RIA Value Drivers, Multiples, and the Seller Mindset with Derek Bruton
The Modcast | Episode 027
In this episode, we sit down with Derek Bruton, Head of M&A at Modern Wealth Management and our first-ever repeat guest, to unpack what’s really driving deals in today’s wealth management landscape. Drawing on decades in the industry and conversations with hundreds of firms a year, Derek breaks down the seller mindset, the value drivers that separate premium firms from the pack, and how advisors across different affiliation models are thinking about their next chapter. Whether you own an RIA, operate on a broker dealer chassis, or are simply curious about where the industry is heading, this conversation offers a candid look at what sellers are solving for beyond price.
Key Topics Covered:
- Why today’s sellers are motivated by more than money, from role fatigue and growth ceilings to succession and talent concerns
- How the average acquisition now exceeds $1 billion in AUM and what that signals about the industry’s maturation
- The shift from running a practice to running a business, and the desire to get back to clients and prospecting
- Why selling rarely means retiring, and how the “sell and stay” model gives advisors a new lease on life
- The value drivers that move a firm up or down the multiple range: organic growth, next gen talent, technology, and marketing investment
- How median deal multiples have climbed from 8x adjusted EBITDA in 2020 to 11.6x in 2025, and why the market has bifurcated
- Where a $500 to $750 million firm should focus to add a full turn or two to its multiple over the next 24 months
- How value drivers and structure differ across corporate RIA reps, RIAs on a broker dealer chassis, and standalone RIAs
- The tradeoff between platform flexibility and simplicity, and the role of “tech debt” in independent broker dealer land
- Debunking the biggest misconception in M&A: that selling means the owner is headed for the exit