Breaking Down 2025 M&A Trends in Wealth Management

The M&A environment for financial advisory firms is entering a new phase of sophistication, selectivity, and strategic alignment. 2025 is proving to be a pivotal year where enterprise value is being determined less by assets alone and more by business fundamentals, operational scalability, and future-ready leadership.

Let’s dive into the dominant M&A trends shaping the wealth management industry.

Private Equity Remains Aggressive

Institutional capital continues to flow into the wealth management space, but buyers are now becoming more selective. Quality of earnings and scalability now drive valuations more than size alone.

Talent Retention Enterprise Value

Buyers are heavily scrutinizing client demographics, advisor age, and bench strength. Firms investing in talent development and next-gen leadership are commanding higher multiples.

Roll-Ups Are Becoming More Sophisticated

National platforms are prioritizing cultural alignment, strategic fit, and long-term enterprise value — not just assets under management. Advisors are being evaluated as potential business partners, not simply sellers.

Shift from "Lifestyle" to "Enterprise" Valuations

Firms with documented processes, succession plans, and leadership teams are commanding premiums. Solo practitioners without infrastructure are seeing downward pressure on multiples.

Valuations are Bifurcating

Top-tier firms are trading at 8–10x EBITDA. Average or “status quo” practices are facing compression closer to 5–7x. The gap between winners and laggards is widening.

Advisory firms that invest in growth, scalability, and leadership continuity are positioning themselves for maximum enterprise value — whether a transition is near or still years away.