FAs Anticipate M&A Surge in 2025: DeVoe
The latest survey from DeVoe & Company, an RIA M&A advisor and research firm, reveals a striking change in how over 100 RIA executives, owners, and principals view industry dealmaking as of early 2025. The outlook for M&A activity in 2024 took a sharp upturn, with more than 40% of respondents anticipating a rise in transactions over the next year—up from just 18% with similar expectations in 2023. Meanwhile, pessimism dwindled, with only 5% predicting a drop in volume compared to 31% the prior year.
According to the report, this spike in M&A enthusiasm was sparked by quicker-than-expected federal interest rate cuts, alongside a thriving stock market, declining borrowing costs, and favorable broader economic conditions. Growth emerged as the leading reason for RIAs to sell, cited by 65% of respondents, followed by liquidity (55%) and succession (49%), while growth also eclipsed talent as the main incentive for buyers.
Valuation forecasts have grown rosier too, with nearly one-third expecting higher valuations ahead, compared to just 12% foreseeing a decline—down sharply from 35% in 2023. However, the appetite to acquire has cooled slightly, with 56% planning a purchase within two years in 2024, down from 65% in 2023. The report chalks this up to heightened awareness of the costs, complexities, and fiercer competition involved in sealing a deal.
The survey also flagged ongoing succession challenges, with DeVoe’s ‘next-gen affordability index’ showing just 18% of RIA leaders believe their internal successors can afford to take over—a steep fall from 38% in 2021, with little recovery by 2024. Over half of advisors surveyed in 2021, 2022, and 2024 see succession planning as a major looming issue for the industry.
When it comes to worries, staffing topped the list for 47% of respondents, with organic growth and stock market volatility also ranking high on their list of concerns.
