Within the RIA industry, buyer demand remains robust, with 2025 M&A already exceeding all of 2024’s record pace. Today’s RIA valuations remain healthy, while firms exhibiting better metrics garner much higher numbers. Well-capitalized private equity players and institutional investors continue to show great interest in the space’s potential ROI. How long will the RIA industry’s consolidation /aggregation mania persist? While the macro-economic environment may – or may not – inspire a pullback, an RIA’s value is ultimately determined by what someone is willing to pay for it. And that is a function of what’s available in the marketplace and what the buyer is looking for.
A firm’s tech stack has both a direct and indirect impact on its valuation and its marketability. A buyer might come to the table with an already robust tech stack that needs no fortification or enhancement. However, the multiples that traditionally drive valuations – revenue, EBITDA, cash flow – can be attributed, in part, to the technology infrastructure that enabled them. Beyond any gaps the buyer is (or is not) seeking to fill, a seller’s tech stack reflects its leadership’s priorities, its ability to effectively capitalize on growth drivers and the firm’s operational efficiencies.
How, why and to what extent does an organization’s tech stack impact its valuation, and what factors go into a buyer’s assessment? We spoke to four industry experts for their insights:
- Ryan Kaminski, Co-Head, Mergers and Acquisitions, Green Sail Capital Partners, a boutique M&A advisor specializing in mergers, acquisitions, valuations and capital raises for RIA firms
- Jim Roth, Partner at Ascentix Partners, a network of strategic consulting and M&A advisory firms that specialize in accelerating value creation for wealth management enterprises
- Ryan George, Chief Marketing Officer, Docupace Technologies, a digital back-office workflow and automations provider for the wealth management industry
- Sid Yenamandra, Founder & CEO, Surge Ventures, a SaaS venture studio targeting the financial services and wealth management industries
Q: Do careful investments in an RIA’s tech stack help drive the firm’s valuation? If so, what are the tech investments that RIAs should prioritize if the goal is to create the conditions necessary for a successful sale of the business in the foreseeable future?
Ryan Kaminski – RIA valuation impact from technology investments is dependent upon the type of acquirer. RIAs that are add-on acquisitions for larger RIAs will likely receive the same valuation regardless of their tech stack. This is because most large RIAs already have heavy CAPEX spend on technology and will position their superior technology as a value add to their acquired firms.
However, the benefits of scalable tech stack investment will prove a valuable component in attracting direct private equity investment as a new platform – which tend to trade at one of the highest sale multiples. In this scenario, the RIA is effectively positioning itself to become the aforementioned large RIA that acquires smaller RIAs and offers them its superior tech stack.
A strong rule of thumb would therefore be that only multi-billion AUM RIAs should consider investing in their tech stack for the purposes of increasing sale valuation prior to going to market.
Q: Conventional M&A wisdom about RIA firms held that being multi-custodial helped enhance the value of a firm upon sale. Do you believe this is accurate? What tech stack investments can these firms make that optimize the value of being multi-custodial in the eyes of potential acquirers?
Jim Roth – Echelon Partners reports record-breaking RIA M&A activity in 2025, with 345 transactions through Q3 and total transacted assets reaching $1.2 trillion. Strategic acquirers dominate, accounting for over 91% of deals. The surge is driven by private equity backing and mega-deals. While the transactions are impressive, they underscore how scale and operational readiness — often enabled by technology — are key acquisition drivers. Technology stack investments by RIAs are increasingly viewed as strategic assets, and they can meaningfully influence valuation multiples in M&A transactions.
A well-designed tech stack signals:
- Operational maturity: Streamlined workflows, automated billing and integrated CRM/portfolio systems reduce manual errors and improve client service.
- Scalability: Cloud-based infrastructure and modular architecture allow for easier onboarding of new advisors and clients post-acquisition.
- Risk mitigation: Strong documentation, compliance tools and data governance reduce transition risk and support due diligence.
- Retention and continuity: Tech-enabled client portals and planning tools improve engagement and reduce churn, which acquirers value highly.
If you’re advising or preparing an RIA for sale, framing tech investments as part of a broader enterprise value narrative is key. Acquirers want to see:
- Intentional architecture: Not just a collection of tools, but a system designed for scale.
- Documentation and governance: Evidence of process rigor and continuity planning.
- Vendor flexibility: Ability to pivot or integrate with buyer systems post-close.
Demonstrating a proactive approach to tech adoption – such as leveraging AI-driven analytics, cybersecurity protocols, and seamless integrations with custodians – can further differentiate your firm. This not only positions you as future-ready but also reassures acquirers of minimal disruption during integration, supporting higher valuations and smoother transitions.
Q: Would it be fair to say that, up until the past decade, RIAs had significantly underinvested in their back-office technology and operating platforms? How did this impact a firm’s ability to command top dollar at sale? What are the back-office tech investments you see savvier RIA firms putting in place now in anticipation of a sale in the next 10 years?
Ryan George – For years, many RIA firms underinvested in back-office infrastructure, and it showed when it came time to sell. Clunky systems, manual processes and fragmented or “dirty” data made it harder to scale and harder to sell. That’s changed. The firms commanding top-tier valuations today are those investing in clean, modern tech stacks that include integrated CRMs, automated billing, digital onboarding and new account opening, robust reporting and simplified compliance. They’re streamlining operations not just for efficiency, but to boost enterprise value and growth rates. Smart sellers know buyers are looking for leverage, scalability and low friction. The ones planning for an exit in the next decade are building it now with systems that reduce key-person risk, improve margins and make integration seamless. Operational maturity is no longer optional. It’s THE multiplier.
Q: Acquirers look for a business that aligns with their needs – not to inherit a compliance headache. What are the key components of a tech stack that signal to buyers that a firm has a strong culture of compliance?
Sid Yenamandra – Conducting business in an ever-evolving ecosystem is increasingly complex, especially for firms enjoying robust growth – the very firms acquirers are most interested in. From operational hurdles to new products and regulatory standards, firms must have an existing compliance infrastructure in place that has demonstrably scaled with their growth. Importantly, having tracking capabilities and oversight functionality in place is essential. It’s not enough to have automated workflows, streamlined processes and cybersecurity protocols. You need to be able to validate what each component of your tech stack does, how it works, and how you know it is performing correctly and effectively. Compliance is not just a box you check because you have to. When you’ve got the right technology in place, addressing regulatory and compliance needs becomes a strategic function that contributes to a stronger bottom line. What makes a business successful is what also makes it marketable.
