Wealth management merger activity reached unprecedented levels in 2025, marking a structural shift that financial advisors can no longer afford to treat as temporary.
A new report from Berkshire Global Advisors, released today (Jan. 28) shows that RIAs with more than $100 million AUM completed 349 transactions during the year, marking the highest total ever recorded and smashing 2024’s previous peak of 276, a 26% year-over-year jump in deal volume.
The surge reflects intensifying succession challenges, escalating client expectations and a buyer market flush with private capital that continues to reward scale.
Demographics remain the most powerful force pushing firms toward external sales. The report cites Cerulli Associates, which estimates that advisors age 55 and older represent 42% of the industry but oversee nearly 60% of client assets. As retirement approaches, internal succession plans are proving harder to execute, especially as valuations climb and next-generation partners struggle to secure financing for buyouts.
At the same time, rising compliance obligations, cybersecurity risks and technology costs are compressing margins for smaller practices. Larger platforms can spread these expenses across broader client bases, making external transactions an increasingly practical path for founders seeking continuity for clients and staff.
Private equity-backed platforms continue to dominate the buyer landscape. Sponsor-backed acquirers accounted for roughly 86% of strategic acquisitions in 2025, slightly higher than the prior year and part of a long-running upward trend.
Established dealmakers including Wealth Enhancement, Mercer Advisors, Merit Financial Advisors and Beacon Pointe Advisors once again led transaction volume, supported by mature sourcing pipelines and dedicated integration teams.
As the report notes: “Private equity-backed RIA platforms led 2025 acquisition activity, driving approximately 86% of strategic acquisitions.”
Deal structures are also evolving with equity participation more common and many sellers reinvesting a portion of proceeds into the acquiring firm. Rollovers of 15% to 30% of consideration into buyer equity are increasingly typical, allowing sellers to remain aligned with future growth.
Another defining shift is buyers’ push beyond traditional RIA acquisitions. Platforms are adding trust companies, outsourced chief investment officer services, retirement plan consulting and investment consulting firms to broaden capabilities. Simultaneously, RIAs are accelerating purchases of CPA firms or advisory businesses with in-house tax practices to deliver integrated tax planning and preparation.
“Platforms expanded beyond RIAs into trust, OCIO and retirement services. RIAs also accelerated tax services acquisitions, buying CPA firms or in-house CPA arms,” the report notes.
Client expectations are also reshaping the strategic logic behind deals. Portfolio management has become increasingly commoditized, and clients now want coordinated estate planning, trust services, tax strategy and modern digital experiences. Delivering that level of service often requires a scale that many independent firms cannot build alone.
Despite fewer mega-transactions than in 2024, overall momentum remains strong. The report concludes that the current consolidation wave is rooted in durable industry forces rather than short-term market cycles.
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