Wealth Advisory M&A Wave Continues

- Valuation multiples for wealth management firms commonly range from 3x to 5x annual revenue or 6x to 9x EBITDA, with higher-quality firms commanding premium multiples based on factors like recurring revenue and client retention. - Private equity is a major force in the sector's consolidation, with PE-backed buyers accounting for 73% of the 241 transactions announced through August 2025. This influx of capital is driven by the industry's recurring revenue models and growth potential. - CAPTRUST's acquisition strategy is fueled by private equity investment from firms like GTCR and Carlyle Group, which valued the firm at over $3.7 billion and supports its ongoing M&A activities. The firm recently hired a dedicated head of M&A, Mike Wunderli from Echelon Partners, to further accelerate its inorganic growth. - OneDigital’s strategy involves acquiring firms to integrate wealth management with its core employee benefits and human resources offerings. The company recently underwent a majority-stake sale to private equity firm Stone Point Capital and Canada Pension Plan Investment Board (CPP Investments) in a deal valuing it at over $7 billion. - The Osaic transaction with Bard Financial Services represents a transition to Osaic's "Empowered Independence" W-2 channel, a model that differs from a traditional acquisition by offering affiliation and support services. Osaic has been actively recruiting, adding financial professionals representing approximately $22 billion in client assets in 2023. - Beyond scale, M&A is driven by a need for succession planning as firm founders retire and a push for product diversification to create more comprehensive service offerings. - The pace of M&A in the wealth advisory space has increased, with deal volume through August 2025 showing a 20% increase over the same period in the prior year.