RIA M&A Activity Slows 19% in the Third Quarter
The first half of 2026 was the strongest six months for M&A deals in the RIA space on record, with activity up 13% from the same period in 2025 and trending toward another record year, according to DeVoe & Company data.
But that is now at risk, with a significant slowdown in RIA deals in the third quarter. As of Sept. 22, there were 72 RIA transactions during the quarter, down 19% from the same period in 2025, DeVoe & Company announced at its M&A+ Succession Summit on Thursday.
DeVoe attributes the slowdown to macroeconomic and geopolitical uncertainty, as well as the market volatility that followed. The firm doesn’t anticipate changes in the long-term drivers of RIA M&A.
“The transactions announced on a given day are the result of a decision to sell, which came six to 18 months ago,” said David DeVoe, founder and CEO of DeVoe & Company. “The volatility and distraction created by tariffs, the war with Iran, gasoline price surges and other economic shocks over the last 18 months caused some advisors to pause before moving forward with a sale. That hesitation is now emerging in our transaction data.”
This follows a record first half of 2026, with 93 deals in the first quarter, up 24% from the year-ago period and matching the all-time quarterly record. Second-quarter activity tapered to 74 transactions, just one more than the same period in 2025.
Wealth management transactions are a lagging indicator, given that an advisor typically decides to sell between six and 18 months before a deal closes.
DeVoe said the slowdown is temporary and that market volatility is largely to blame. The VIX, for instance, a leading indicator for near-term volatility, surged in April 2025 following steep tariff announcements. The U.S. conflict with Iran caused another increase in market uncertainty.
“During periods of volatility, advisors appropriately turn their attention to clients,” DeVoe said. “Major strategic decisions move down the priority list. RIA owners have not abandoned their plans to sell. They simply delayed the timing.”
According to Wealth Management’s Advisor Sentiment Index, financial advisors’ views on the health of the economy and the stock market remained steady in August. Many have a positive view of the current climate, but that perspective dims when looking ahead over the next several months.
Confidence in the economy overall dropped slightly in the month, from an index reading of 105 to 102, while sentiment over the stock market remained positively stable at an index reading of 108, equal to July’s response.
A lot of the drivers of RIA M&A remain in place, including the need for succession, scale and buyer interest in high-quality firms, DeVoe said.
“We believe that our pipeline of over 15 transactions forecasted to close during the next six months indicates that the M&A market could bounce back in the near term,” he said. “The market did not lose its long-term momentum, it likely experienced a pause in the formation of new transactions. Although September is on track to be an extremely weak month, we expect activity to accelerate over the next several months and quarters.”
