Wealth Advisory M&A Activity in 2025: A Growing Opportunity for Sellers

Mergers and acquisitions (M&A) activity in the wealth advisory sector has surged in 2025, with 60 announced transactions in the U.S. through February alone—an impressive 27.5% increase over the same period last year. Private capital-backed wealth management firms are once again leading the charge, capitalizing on favorable market conditions and a shift in regulatory dynamics. This uptick in deal-making activity signals a strong year for M&A, and DOXA is closely monitoring the developments shaping the industry.

Market Trends and Drivers

One of the key drivers of this momentum is a shift in leadership at the Federal Trade Commission (FTC), leading to less stringent regulations and a more M&A-friendly environment. With lower taxes and a supportive regulatory landscape, many firms are positioning themselves for growth by seeking strategic partnerships, making 2025 an excellent time for business owners to consider their options.

Additionally, the strong economic environment, combined with private equity’s appetite for returns, has created an optimal environment for deal-making. Private equity buyers, in particular, are focused on tripling their investments within three to five years, a strategy that aligns with the growing demand for wealth management services. Delayed transactions from 2024—especially following the re-election of President Trump—are now coming to fruition, with several deals expected to close by the end of Q1 and into Q2 of 2025.

Private Capital and Independent Firms Drive M&A Activity

Private capital-backed firms were responsible for 35 of the 60 transactions (58.3%) through February, with this percentage expected to rise as the year progresses. These buyers are particularly well-positioned to drive M&A activity, with robust financial backing and a clear focus on long-term value creation.

Independent firms have also seen notable growth, accounting for 17 transactions and 28.3% of the market. This marks a significant increase from 2024, where independent firms represented just 21% of the total market share. Insurance brokerages have made their mark in the wealth advisory space, acquiring five wealth management and retirement firms through February 2025.

Notable Transactions and Their Impact on the M&A Environment

Several significant transactions in early 2025 have underscored the growing value and strategic nature of wealth advisory M&A. These transactions, both large and mid-sized, highlight the ongoing trend of consolidation and expansion within the sector.

The large deal values in these transactions are indicative of the favorable M&A environment in the wealth advisory space. The focus on strategic acquisitions with high asset value demonstrates the continuing demand for established wealth management firms, especially those with a strong institutional client base. These deals highlight the increasing importance of acquiring firms that not only bring immediate financial growth but also provide specialized expertise, enabling acquirers to meet the evolving needs of their clients.

Overall, the scale of these transactions signals a strong appetite for consolidation and market expansion within wealth advisory. The robust deal values reflect both the strength of private capital in driving M&A activity and the positive economic climate, which continues to support large-scale investments. The ongoing flow of capital and the demand for strategic acquisitions are key factors contributing to an even more active and dynamic M&A environment in 2025.

A Record-Breaking Year in the Making

DOXA believes that 2025 could be a record-breaking year for wealth advisory M&A activity. Business owners are proactively planning for the future, looking to secure the best possible outcomes for their firms in a market that remains full of potential. For many, M&A offers an avenue for growth, strategic expansion, and long-term financial success.

While some market uncertainties—such as President Trump’s potential tariffs—could impact certain sectors, the ongoing infusion of capital from private equity into Registered Investment Advisors (RIAs) is bolstering confidence in the wealth management space. Even amid potential challenges, the overall M&A climate remains strong, with many firms looking to secure advantageous deals before external factors influence their decision-making processes.

The Role of M&A in Wealth Advisory Growth

As wealth advisory firms look toward strategic partnerships and acquisitions, it’s essential for business owners to approach M&A with a clear understanding of their objectives. Whether seeking to scale their operations, enter new markets, or diversify service offerings, M&A can provide a powerful lever for accelerating growth. For firms considering a sale, understanding the market dynamics and timing is crucial in ensuring the best possible outcome.

DOXA continues to monitor the M&A landscape in the wealth advisory sector, providing expert insights and guidance to firms looking to navigate the complexities of mergers and acquisitions. As more transactions are expected in the coming months, it’s clear that 2025 will be a year of significant opportunity for those prepared to take the next step in their business journey.

Moving Forward

As the M&A market for wealth advisory firms remains strong, it’s crucial for business owners to evaluate their options carefully. Whether aiming to sell or expand through acquisitions, DOXA’s deep understanding of the market can help guide firms through these critical decisions.

At DOXA, we are committed to supporting our clients through every stage of their M&A journey. Our expertise in the wealth advisory and insurance sectors enables us to provide tailored solutions that maximize value and drive long-term success.

If you are considering a merger or acquisition in the wealth advisory space, contact us today to discuss how DOXA can help you make the right move at the right time.

Let’s connect and explore your options in this dynamic and evolving market.

For more insights on M&A in the wealth advisory space and how to position your firm for success, stay tuned to DOXA’s M&A reports.