In light of their recent 2025 Advisor M&A Review by Succession Resource Group (SRG), and our long-standing admiration for SRG's work, we wanted to share some of their findings with the FindBob community. This comprehensive report sheds light on key trends in mergers and acquisitions (M&A), succession planning, and market dynamics within the financial advisory sector.
Market Insights: 2025 Advisor M&A Review
At FindBob, we have long revered the work of Succession Resource Group (SRG) and have closely followed their annual reports on M&A activity for many years. Their insights have been instrumental in shaping our understanding of the financial advisory landscape. As we progress through 2025, the sector continues to experience transformative changes. SRG's ninth annual review provides invaluable data, analyzing 176 transactions totaling over $13.3 billion in assets under management (AUM) during 2024.
M&A Valuations Steady Amid External Factors
Despite challenges such as elevated interest rates and political fluctuations, M&A valuations have remained resilient. The average EBITDA multiple for advisory businesses held steady at 9.20x, with topline recurring revenue multiples increasing modestly to 3.08x—an uptick of 1.83% from 2023. These figures align with historical norms, underscoring the stability of the advisory market.
Advocacy in Transactions Yields Premium Results
A notable finding from SRG's report is the significant advantage of engaging a sell-side advocate. Advisors who participated in competitive bidding scenarios with advocacy secured a 6.91% premium on average multiples compared to private, non-advocated sales. Additionally, these advocated transactions boasted an average down payment of 75%, surpassing the 61% average for non-advocated deals. This trend reflects a robust buyer demand, highlighted by an average of five offers per listing and an impressive buyer-to-seller ratio of 66:1 in 2024.
Succession Planning: A Growing Imperative
The emphasis on succession planning within advisory firms is intensifying. SRG's survey reveals that 28% of firms have designated succession planning as a primary focus for 2025, with 48% identifying their internal team as the ideal successor. However, preparedness remains a concern; a striking 56% of respondents rated their succession readiness at five or below on a ten-point scale. This gap highlights the critical need for proactive planning and effective communication.
Technology as an Enabler, Not a Replacement
While the advisory space continues to evolve, one constant remains: the need for human expertise in succession planning, M&A, and practice management. Whether through home office teams, succession consultants, or M&A advisors, keeping humans in the loop is critical. At FindBob we firmly believe technology plays an increasingly vital role in assisting these professionals—streamlining processes, providing data-driven insights, and ensuring firms are equipped to make informed decisions. By leveraging the right tools, advisors and enterprises can enhance outcomes while maintaining the personal touch that defines successful transitions.
Market Trends Influencing Deal Structures
In 2024, cash down payments experienced a slight increase, averaging 65%. Over half (52.6%) of the transactions incorporated retention clauses to mitigate post-sale attrition risks. Despite economic pressures, buyer demand remains robust. SRG anticipates a stable buyer-to-seller dynamic as firms balance organic growth with internal succession strategies.
Private Equity's Selective Participation
Private equity (PE) firms continue to influence the acquisition landscape, albeit with a selective approach. They often focus on specific niches and prefer to retain sellers post-transaction. Interestingly, only 5% of surveyed advisors consider PE firms as their ideal buyers, even with the allure of competitive valuations and performance-based deal structures.
As we navigate through 2025, it's imperative for financial services professionals to stay attuned to these evolving trends. Whether you're exploring M&A opportunities, formulating succession plans, or evaluating internal growth strategies, leveraging data-driven insights is crucial for informed decision-making. For a comprehensive understanding of SRG's findings, you can access the full report here.
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