Independent broker-dealers (IBDs) are making significant moves in the mergers and acquisitions market by purchasing registered investment advisors (RIAs) and wealth managers, signaling a notable shift in industry dynamics. Traditionally, IBDs refrained from owning advisors' books of business, but recent actions show a departure from this norm.

InvestmentNews reports that IBDs like LPL Financial and Cambridge Investment Research Inc. have disclosed details of their acquisitions in filings with the Securities and Exchange Commission, completing 19 acquisitions last year through its "liquidity and succession" solution, totaling $190.3 million in consideration with potential future payments of $107.2 million. Similarly, Cambridge reported acquiring Antaeus Wealth Advisors Inc.'s commission business for nearly $4.4 million.

According to InvestmentNews, that trend underscores the intensifying competition among IBDs and private equity buyers for advisors' practices, driven by the looming succession planning landscape. As private equity firms increasingly target wealth management entities, IBDs recognize the need to actively acquire advisors' businesses to retain assets and remain competitive.

Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.