The wealth management industry continues to experience a record-breaking surge in mergers and acquisitions in 2025, with dealmakers navigating increasingly complex transactions, as reported by Financial Planning. As more registered investment advisory (RIA) firms and wealth managers pursue growth through consolidation, issues such as client transition logistics, tax efficiency, and the potential for "mergers of equals" have become central to negotiations.
Mergers of equals (transactions where two similarly sized firms combine to form a new entity) remain rare in wealth management. However, according to Financial Planning, that trend may shift. According to Jessica Polito, founder of Turkey Hill Management, sellers increasingly are exploring mergers as a means of retaining operational control while gaining scale. Still, they require extensive negotiation over valuations, governance, and branding—factors that make true 50-50 mergers "almost never" feasible.
Tax and operational efficiency are equally critical in this environment. Michael Camp, head of client solutions at 55ip, a JPMorgan Chase-owned firm specializing in tax-focused investment technology, told Financial Planning that preparation is key to avoiding disruptions in post-deal transitions. Missing tax-basis data, unexpected capital gains, and slow custodial transfers can derail client migrations and strain advisor relationships. "It comes down to having that one-on-one conversation," Camp said, adding that advisors managing hundreds of households often find prolonged transitions distracting. Successful migrations can take as little as three months, though six months or more is common. Delays stretching beyond a year risk client attrition and team frustration.
Financial Planning reports that industry data confirms that consolidation is accelerating. DeVoe & Company's latest RIA Deal Book reported a record 94 RIA transactions in the third quarter—an "unprecedented" high—driven by lower interest rates and renewed enthusiasm among private equity-backed consolidators Meanwhile, Echelon Partners tracked 125 total wealth management transactions in the third quarter alone, a 69 percent year-over-year increase. Major players such as Carson Group, Merit Financial Advisors, and Mariner Wealth Advisors lead the pack, each announcing double-digit acquisitions in 2025.
For sellers, the pressure is mounting to prepare for the technical and tax hurdles that accompany such deals, as reported by Financial Planning. Camp emphasized the importance of pre-closing coordination—especially when switching custodians—to prevent forced liquidations or capital gains that can undermine deal value. By proactively addressing these details, acquiring firms can reassure advisors and their clients, ensuring a smoother transition and preserving long-term relationships.
Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.
