The RIA landscape is in the middle of a historic consolidation wave, with deal activity skyrocketing and valuations on the rise. But there’s one factor that can quietly erode, or dramatically boost, your firm’s value: data ownership.
In his latest piece for WealthManagement.com, UX Wealth CEO Kyle Wiggs outlines why RIAs that don’t control their client data face hidden costs, delayed transitions, and even reduced offers during M&A. Legacy TAMP contracts often create restrictions, high extraction fees, and portability issues that buyers view as risks.
Kyle shares real-world examples, illustrating how a $500M RIA could see a 10% reduction in deal value due to lack of clean, transferable data. On the flip side, firms that own and organize their data can achieve smoother transitions and command higher valuation multiples.
He also breaks down four strategies every RIA should adopt:
- Choose advisor-friendly platforms with transparent data policies
- Negotiate clear ownership rights in contracts
- Audit your data regularly for accuracy and portability
- Partner with M&A experts who understand data-driven valuations
In today’s market, owning your client data isn’t just an operational best practice—it’s a valuation multiplier.
Read the full article on WealthManagement.com
