By Sarah Falcon. Updated 2026-10-08.
When a firm plans for succession, a sale, or new equity partners, buyers look closely at organic growth: new clients and assets that come from the firm's own work, not market gains. A growth record shows where those clients came from and what the firm did to win them.
Kitces measures organic growth as the revenue from new clients a practice acquired through its own marketing. It leaves out growth from existing clients, such as market gains, new contributions, and fee increases, and growth from mergers and acquisitions.
For a reference point, the typical practice in the 2026 Kitces study grew 8% organically in 2025 by new revenue and 10% by new clients. Practices actively seeking growth grew 9% by revenue and 11% by clients.
A buyer who wants growth can buy it. Kitces notes that firms are commonly acquired at about 2.5 to 3.5 times annual revenue. The typical practice in the study spent $0.70 on marketing for each new dollar of client revenue. A firm that can show how its own growth was won gives a buyer or successor something to weigh against that price.
In the first half of 2026, Fidelity's midyear report put the median acquired RIA at $630 million in assets, up from $517 million, and found that deals with RIAs above $1 billion rose 6% (InvestmentNews). DeVoe & Company counted 72 RIA transactions announced in the third quarter through September 22, down 19% from 89 a year earlier. DeVoe attributes the slowdown to owners delaying sale decisions and says they have not abandoned their plans (InvestmentNews).
A buyer can ask how much of a firm's growth depends on one partner's network. A record answers it.
In the Kitces study, high-growth practices drew 33% of their new client revenue from referrals, against 80% for other practices.
A firm with several sources can show a buyer that the growth does not rest on one person.
How to tell whether your marketing is working
A record does not set the price of a firm. It gives a buyer or successor facts to weigh.
Kestrel's work leaves a record of it: the plan, the programs, and the data showing where new clients came from.
What is organic growth for an RIA? New clients and the revenue they bring, won through the firm's own work. It leaves out market gains and acquisitions.
How far back should the record go? Start now and keep it each year. One year of records is more than none.
A 30-minute call with Sarah Falcon. We talk through where your clients come from today and where you want growth to come from.