RIA M&A Slows; Record Quarter Streak at Risk

DeVoe & Co. reported 72 registered investment adviser purchases announced in the third quarter by Sept. 22, a 19% decline from the same period in 2025. The firm warned that, unless more deals are filed before the quarter closes, the industry’s run of consecutive quarterly records will stop. The partial tally marks the first quarter-over-quarter slowdown in RIA transactions since late 2024.

DeVoe & Co. noted that announcement counts often lag sellers’ decisions by six to 18 months, so the quarterly totals can trail changes in buyer and seller sentiment. Founder and CEO David DeVoe said the count should be read as a delayed indicator: “RIA M&A numbers are better seen as a lagging indicator of economic worries among buyers and sellers.”

DeVoe attributed much of the pullback to external events earlier this year and last that drew advisors’ time toward client issues, including tariff increases, geopolitical tensions and higher fuel costs. He added that recent interest rate increases could exert a modest near-term drag on deal activity.

The year began with 93 transactions recorded in the first quarter, matching an all-time quarterly record, before falling to 74 in the second quarter. Data covering the first half of the year showed 120 transactions, a 9% decline from the same period in 2025, while deals for firms managing more than $1 billion in client assets rose about 6%.

A May survey by DeVoe of 11 large RIA buyers indicated uncertainty about whether average sale prices would keep rising. M&A attorney Corey Kupfer reported slower pacing on offer letters and longer due diligence periods, which can extend overall timelines by several weeks. Kupfer observed: “Letters of intent are coming a little slower and the due diligence period has stretched; if the deals run 30 or 45 days slower, the numbers for any given quarter will be lower.”

Kupfer said buyers are prioritizing larger practices that show steady organic growth, deeper leadership teams and younger advisors who can step into leadership roles over time. These characteristics help justify the valuation multiples buyers are still paying, and they help explain why firms with more than $1 billion in client assets have been relatively more likely to change hands.

DeVoe noted the last quarter that failed to set a quarter-over-quarter record was Q3 2024, when activity matched the year-earlier period. The sector has posted nearly two years of rising quarterly deal totals; whether that streak continues depends on how many pending transactions are announced before the close of the third quarter.