What Will M&A Look Like in 2026?

Core Insights - The advisory M&A market is experiencing record activity, with expectations for continued growth into 2026, despite smaller firms pulling back due to increased competition among mid-sized sellers [1][2]. Group 1: Market Activity - A record 94 deals were completed in the third quarter, positioning the market to exceed 300 transactions by the end of the year, marking an all-time high [2]. - Private equity (PE) is significantly influencing RIA dealmaking, driven by interest rate cuts from the Federal Reserve, which have reduced capital costs [4]. - Sub-acquisitions have reached a record high, accounting for nearly one-third of all transactions, while minority transactions represent 14% of total deals [6]. Group 2: Competitive Landscape - Mid-sized companies are increasingly active in the M&A market, seeking to acquire a wider range of services to remain competitive as they grow beyond boutique clients [5]. - The market is evolving, with a broader range of buyers and sellers, and many firms are exploring different business models to adapt to changing client needs [4][5]. - Medium-sized sellers, managing between $501 million to $1 billion in assets under management (AUM), have completed nearly 30% more deals in 2024 compared to the previous year [6].