September’s M&A filings show an active but highly fragmented RIA consolidation market that’s led by serial acquirers and focused on acquiring established regional firms. Most of the 24 acquired firms in the September data had less than $1 billion in assets under management (AUM). Themes for the month include scale, geographic expansion and demand for firms with tax, family‑office and specialized planning capabilities.
Large consolidators are building up their national footprints by combining smaller, local firms, selective billion‑dollar‑plus acquisitions and advisor‑transition arrangements. One example of the scale of deals was Wealth Enhancement Advisory Services’ three acquisitions including Arbor Capital Management, Trippon Wealth Management Group and WealthShield Partners. Other than Allworth Financial, which acquired High Falls Advisors and Sachetta, all of the other acquirers represented in the September data acquired one company.
Wealth Enhancement had the most acquisitions represented in the data, while Allworth was the only other repeat successor after grouping its two name variants. Together, they accounted for 20.8% of acquired firms, but just 9.4% of assets.
Largest Deals
The largest acquired firm in the September data was Evoke Advisors, purchased by MAI Capital Management, with $17.29 billion in AUM. There were five other acquired firms with $1 billion or more in AUM, including U.S. Capital Wealth Advisors ($8.76 billion) by Arax Advisory Partners, Westend Advisors ($1.87 billion) by Victory Capital Management, Stillwater Capital Advisors ($1.34 billion) by CapFinancial Partners, WealthShield Partners ($1.27 billion) by Wealth Enhancement Advisory Services and Sachetta ($1 billion) by Allworth Financial.
There is an interesting gap between headline scale and typical firm size. The September data included 24 acquired firms representing $38.16 billion in acquired‑firm AUM, and just two firms accounted for 68.3% of that. Evoke alone represented 45.3% of the AUM.
Most activity involved much smaller firms. The median acquired firm had $489.5 million in AUM. Literally half of the acquired firms were below $500 million in AUM.
Pursuing More Capabilities
The targets are also not homogenous. The September data included family‑office firms, tax‑focused advisory businesses, traditional wealth managers and investment‑focused firms. That mix implies buyers are pursuing differentiated client capabilities and revenue models, especially in the high net worth and complex planning segments.
Buyers are increasingly positioning M&A as a way to add integrated planning capabilities and not just assets. Central Family Advisors joined Prime Quadrant to expand a multi‑family‑office presence. Allworth’s Sachetta deal was explicitly tax‑focused. Wealth Enhancement’s Trippon transaction included an associated tax practice. Tax planning, family‑office services and complex client expertise can command strategic value.
Tax planning, family‑office services and complex client expertise can command strategic value.
Location
The September data included acquired firms across 13 states. California and Texas together accounted for 73.1% of AUM but only seven of the 24 acquired firms. New York’s four targets — Central Family Advisors, High Falls Advisors, Financial Planning Associates and Socha Financial Group — represented 16.7% of records but only 4.7% of AUM. Texas, North Carolina and Pennsylvania each had two acquired firms in the data.
Hesom Parhizkar is the Co‑Founder and Chief Product Officer of AdvizorPro.
