Industry Insights

Stay ahead with the latest M&A trends, market analysis, and succession planning strategies for financial advisors

Michele Mandeville January 15, 2025 Market Analysis

2025 M&A Outlook: Record Activity Expected as 35% of Advisors Near Retirement

The wealth management M&A landscape is poised for unprecedented activity in 2025, with over 40% of RIA leaders expecting increased transaction volume—a substantial jump from just 18% in 2023. This surge is driven by a perfect storm of factors: an aging advisor workforce, favorable valuations, and evolving deal structures.

Key findings from our latest market analysis reveal that average EBITDA multiples have stabilized at 9.2x, while recurring revenue multiples have increased to 3.08x. Perhaps most significantly, only 1% of advisors have a written succession plan shared with relevant parties, despite 43% planning to retire within the next decade.

For sellers, this creates an opportune environment with strong buyer demand and competitive valuations. For buyers, the abundance of acquisition targets presents strategic growth opportunities, though selectivity remains crucial. The evolution toward longer-term partnerships—with transition periods extending from 7-12 years—reflects a fundamental shift in how the industry approaches succession.

"We're witnessing the largest transfer of wealth management practices in history. Advisors who act strategically now will capture maximum value, while those who wait may find themselves with fewer options."

Schedule a Consultation

Topics

M&A Trends 12 Succession Planning 8 Valuations 6 Deal Structures 5 Market Analysis 9 Regulatory Updates 3

Market Statistics

251

RIA Deals Completed in 2023

$13.3B

Assets in 2024 M&A Transactions

79%

Advisors Expecting Increased 2025 Deal Flow

Latest Insights

Expert analysis and trends shaping the advisor M&A landscape

December 28, 2024 Succession Planning

The Succession Crisis: Why 99% of Advisors Lack Written Plans

Despite 43% of advisors planning to retire within 8-10 years, our research reveals a startling gap in succession preparedness. Learn why early planning can increase valuations by 30% and protect client relationships.

December 15, 2024 Valuations

Valuation Trends: Understanding the 3.08x Revenue Multiple

Average multiples have stabilized, but significant variation exists based on practice characteristics. Discover the key factors driving premium valuations and how to position your practice for maximum value.

December 1, 2024 Deal Structures

Private Equity's Evolving Role in Advisor Acquisitions

PE-backed aggregators remain selective but active, with 51% of investment bankers expecting increased sponsor activity in 2025. Learn what PE buyers seek and how deal structures are evolving.

November 20, 2024 Deal Structures

The New Deal Structure: Why 7-12 Year Transitions Are Becoming Standard

The "equity-culture revolution" is reshaping M&A negotiations. Understand why longer transition periods benefit both buyers and sellers, and how to structure deals for optimal outcomes.

November 5, 2024 Succession Planning

Internal Succession Trends: 36% Now Using External Capital

The average stake sold to internal successors reached 20.9% in 2024. Explore financing options for next-gen advisors and how external capital is facilitating internal transitions.

October 22, 2024 M&A Trends

Buyer Priorities: Why Recurring Revenue Tops the List

69% of investment bankers cite recurring revenue as buyers' top priority—up 6% from 2023. Learn what else buyers seek and how to position your practice as an attractive acquisition target.

Ready to Navigate Your M&A Journey?

Whether you're considering selling, buying, or simply exploring options, our expertise and market insights can help you make informed decisions. Schedule a confidential consultation to discuss your unique situation.

Schedule Your Free Consultation