Many of the largest firms in the industry have focused on inorganic growth in recent years, with mergers and acquisitions activity breaking new records. But these firms have also focused much of their energy and money on an organic growth strategy.
It’s hard to do both well, but a recent study by WealthManagement.com in cooperation with Commonwealth Financial Network provides some clues as to what’s driving firm growth this year.
Overall, the study indicates that most advisor practices are growing. On average, respondents reported an annual growth rate of 11.3% in 2023, up from 9.4% in 2022. Some of that growth, of course, was due to market appreciation, with the S&P 500 Index up 26% in 2023.
Wealth Management IQ, a division of WealthManagement.com, conducted the emailed survey from May 22, 2024 to June 11, 2024, and received 453 responses. Respondents were from a variety of industry channels, including IBDs (32%), RIAs (29%) and hybrid firms (26%). Financial planners or investment advisors (43%) and owners or owners/advisors (34%) were the most commonly held roles.
Click through for the top takeaways from the Driving Firm Growth 2024 study.
