DeVoe & Company‘s RIA Deal Book for the fourth quarter of 2025, released Wednesday, reveals that there were more transactions in the sector last year than ever before, with the number coming in at a whopping 322, up 18% from 2024’s 272.
But, while the number of sellers grew 18%, the number of buyers dropped 19%, said David DeVoe, Founder and CEO of DeVoe & Company.
“The RIA M&A industry shattered records in 2025,” the report says, pointing out there were 322 RIA M&A transactions announced, “far surpassing 2024’s record of 272.”
“2025 redefined a ‘new normal’ for M&A velocity,” the report says. “After three years of ~65 transactions per quarter, transaction volume has swelled into the 70s, 80s and even 90s.”
Noting that prior record years had one or two strong quarters, the report says 2025 was “consistently strong throughout the year.”
“The drop in the number of buyers was a surprise,” DeVoe told WSR. “This is another potential step toward the separation we have started to see between the ‘haves’ and ‘have nots’. A shrinking number of buyers are differentiating themselves from the rest of the pack and are winning more transactions.”
Additionally, he says, “One of the more concerning trends is the shrinking share of first-time buyers. They made up just 8 percent of transactions in 2025, the lowest ever recorded. DeVoe & Company would prefer to see this number in the mid-teens, as it is an important health metric for the industry.”
Usually, first-time buyers are established RIAs making their first transaction, according to DeVoe.
He says, “We will need a growing pool of acquisitive RIAs to absorb the growing pool of retiring advisors. New buyers are competing with experienced firms that have proven track records, deep expertise, and strong value propositions, so the bar keeps going up.”
“We will need a growing pool of acquisitive RIAs to absorb the growing pool of retiring advisors.” – David DeVoe, Founder and CEO, DeVoe & Company
The overall “heightened” RIA M&A activity is “being driven by multiple forces,” the report says.
“Private equity-backed Consolidators – armed with capital and seasoned M&A experience – have amplified their outreach. Unrelenting succession challenges are pushing more RIAs to sell externally, while the gravitational force of scale is pulling RIAs to the negotiation table. At the same time, low organic growth across the industry is fueling the aspiration of RIA leaders to find buyers who can help them grow faster.”
The report adds, “As transaction activity continues to evolve, the strategic rationale behind M&A is important to consider. Sellers are carefully contemplating decisions designed to achieve specific goals and to create better lives for their clients, their staff, and themselves.”
“Meanwhile, buyers are deliberately designing the firms of the future, making thoughtful choices about what they want to build and how they want their organizations.”
DeVoe & Company’s annual RIA M&A Outlook, released last month, revealed that, “after two years of recalibration” in the industry, a higher number of RIA executives expected M&A activity to grow in 2026.
“So far, the market has largely stayed on track with our outlook,” DeVoe told WSR on Tuesday. “We expect M&A to continue increasing over the next several years, driven by internal succession challenges and advisors’ ongoing interest in the benefits of scale.”
As of Jan. 16, he went on to say, “we’re seeing 25 transactions year-to-date, a 4% increase compared to the same period in 2025.”
Jeff Berman, Contributing Editor and Reporter at Wealth Solutions Report, can be reached at jeff.berman@wealthsolutionsreport.com.
