How Schwab prepares RIAs for M&A conversations

In 2025, it feels like you’re either a buyer or a seller given the pace and intensity of M&A activity in the RIA industry – and Schwab says it is stepping up to help advisors navigate this evolving environment.

At Schwab IMPACT 2025 in Denver, Colorado, Nikolee Turner, Schwab’s Head of Client Consulting, shared insights with InvestmentNews on how her team supports advisors in preparing for successful M&A conversations—whether they’re considering buying, selling, or simply exploring their options.

According to Turner, the first step in any M&A journey is strategic clarity: “Our consultants really help advisors with that first piece, that strategy piece. Does it make sense for them to do M&A? What is their strategic rationale for wanting to have this conversation?”

The M&A marketplace is more complex than ever, with new types of buyers—including private equity—and increasingly sophisticated sellers. Schwab’s role, Turner explained, is to “help bring more prepared buyers and sellers into the marketplace.” This preparation is crucial, especially for sellers who may be new to these high-stakes conversations. Schwab’s consulting engagements begin with an “envision” phase, designed to help advisors articulate what a potential transaction could mean for their business and how it aligns with their long-term objectives.

Maximizing value

For sellers, maximizing value isn’t just about finding any buyer—it’s about finding the right buyer. Schwab encourages advisors to think deeply about what they have to offer and what they need in return. “If you can get that match right, then they’re going to be most interested in that firm, pay the highest value, and that helps them accomplish their goals,” Turner said.

A key part of this process is assessing cultural fit, which Schwab approaches with a structured assessment rather than gut instinct. Both firms are encouraged to evaluate themselves across several categories, allowing for honest conversations about potential friction points and areas where diverse approaches could strengthen the combined entity. This upfront diligence, Turner noted, “not only helps in that early fit and due diligence but also then if there were to be a coming together of firms, that integration can happen a little bit smoother because we already understand these things about each other.”

While M&A is a hot topic, Schwab’s consulting services extend far beyond dealmaking. Advisors are increasingly seeking help with technology and operations, particularly as they prepare for the integration of artificial intelligence into their workflows. “Our consultants are helping make sure that their workflows are clean and good to begin with so that the AI can be additive to that,” Turner explained.

Human capital is another area of focus. Schwab offers leadership and manager programs to help firms attract and retain top talent—an ever-pressing challenge in the industry. Turner emphasized the importance of creating an intentional employee value proposition, not just for retention but to build a reputation that attracts prospective talent. “Oftentimes advisors wait till they need to hire someone, and then they go seeking for that talent. Instead, we work with them to try and create a reputation and an environment within their firm that’s actually attractive to prospective talent.”

A record-breaking year for M&A

According to DeVoe & Company, 2025 has already surpassed all prior records, with 273 RIA transactions completed by late October—breaking the previous annual record of 272 set in 2024. The industry is on pace to exceed 300 deals by year-end, a milestone that underscores how M&A has become “embedded in the DNA of the RIA space”, rather than a temporary spike.

Several factors are driving this surge:

• Private equity-backed consolidators now account for nearly half of all deals, accelerating their acquisition pace as borrowing costs fell after Federal Reserve rate cuts.
• Mid-sized RIAs (with $501 million to $1 billion in assets) have set new records, representing 24% of all sellers, while large sellers ($1 billion to $5 billion) also remain active.
• Sub-acquisitions—where previously acquired firms become buyers—make up nearly one-third of all transactions, reflecting a maturing and increasingly sophisticated marketplace.
• Minority investments are at their highest level since 2020, with 14% of deals involving minority stakes, providing liquidity while allowing firm leaders to retain control.

The top 10 acquirers account for about 35% of all deals, and the top 20 for more than half of 2025’s activity, signaling both market concentration and a deepening field of buyers. With capital still flowing into the sector and momentum on both the buy and sell sides, the final months of 2025 are expected to push RIA M&A activity even further into uncharted territory.