Despite the strongest first half of any year for RIA M&A transactions, activity cooled off in the second quarter of 2026 from the first quarter, and RIA buyers don’t expect valuations to increase in the second half of this year, according to DeVoe & Company’s Q2 RIA Deal Book, released Thursday.
Among RIA buyers surveyed by the firm, 82% said they expected valuations to remain unchanged during the next six months, while 18% expected them to decline, the report said.
The RIA industry announced 167 transactions in the first half of 2026, 13% above the prior high set in 2025, according to the firm.
Q2 activity slowed to 74 transactions, up by only one from Q2 2025, the firm said.
In comparison, there were 93 RIA M&A transactions announced in Q1 of 2026, up 24% from 75 in Q1 2025 and tying Q3 2025 as the most active quarter ever and representing the strongest start to a year in RIA M&A history, DeVoe & Company reported in April.
“After four years of record-high valuations, none of the Consolidators we surveyed expect valuations to increase over the next six months,” David DeVoe, Founder and CEO of DeVoe & Company, told Wealth Solutions Report by email on Thursday.
“While buyers largely agree that valuations have plateaued, they also believe sellers have yet to fully adjust their expectations,” he said, pointing out 73% of respondents said the gap between buyer and seller valuation expectations is widening.
He added, “DeVoe & Company expects that disconnect to lead to more disciplined pricing and push firms considering a transaction to further differentiate themselves to command premium pricing in the coming months.”
Larger RIAs remain buyers’ top target, according to DeVoe & Company.
Nearly half (46%) of consolidators surveyed for the Q2 report identified firms between $1 billion and $5 billion in assets under management (AUM) as their preferred acquisition target, which DeVoe & Company said reinforced the industry's continued move upmarket.
“Mega sellers” continue to rise, according to DeVoe & Company. Firms with over $5 billion in AUM announced 30 transactions in the first half of 2026, which the firm noted was “already just six transactions shy of last year’s record full-year total.”
At the same time, small sellers decreased to one of their lowest shares on record, at 36%, DeVoe & Company said.
Mid-Sized Sellers
Mid-sized sellers (firms with $501 million to $1 billion in AUM), completed 35 transactions through the first half of 2026, the report says. “Their share of total transaction activity sits at 21%, modestly below the levels recorded in prior years. But after last year’s historic pace, some moderation was inevitable.”
“The motivations driving mid-sized seller activity have not changed,” according to the report.
“Firms approaching $1 billion in AUM often reach an important inflection point. A business built around a founder, or a small group of senior advisors, must begin evolving into a professionally managed enterprise. That transition is both necessary and difficult. Building a leadership bench, expanding operational infrastructure, deepening client capabilities, and institutionalizing growth can take years. It also carries meaningful execution risk.”
For many firms, one main benefit of joining a larger platform is solving that complex equation, the report says.
“What may take a few years to build internally can often be accessed with the stroke of a pen with the right strategic partner.”
DeVoe & Company’s recent advisory work with FRG Family Wealth is an example of that, according to the report. The Bellevue, Washington-based firm, with $866 million in AUM, entered the market with a few clear objectives, the report says, including near-term succession, increased client capabilities, enhanced efficiency and operational redundancy.
FRG decided that merging with a significantly larger RIA was the best solution for it and, after evaluating 30 platforms, picked Mission Wealth as the best choice for its partner, the report added.
“Many mid-sized firms reach a point where the next phase of growth requires something different,” according to Doug Johnson, Managing Director at DeVoe & Company, who his firm said facilitated the transaction.
“FRG recognized that to enter that next phase and achieve its succession goals, it would need additional support,” he said in the report. “Mission Wealth offered a partner that aligned with both the firm’s strategic priorities and its culture.”
Jeff Berman, Contributing Editor and Reporter at Wealth Solutions Report, can be reached at jeff.berman@wealthsolutionsreport.com.
