Wealth management M&A activity reached a record high in 2022, marking ten consecutive years of growth, but signs point to a potential slowdown heading into 2023. According to Echelon Partners, total transactions rose to 340 deals, up 10.7% year over year, despite broader global M&A weakness and rising capital costs. However, average deal size declined significantly as buyers shifted focus toward smaller registered investment advisors amid market uncertainty. Strategic acquirers and private equity-backed firms remained key drivers, accounting for a substantial share of transactions as they pursued scale and consolidation in a fragmented industry. Market volatility and declining valuations also contributed to reduced activity in late 2022, signaling a more cautious outlook. While long-term demand for consolidation remains strong, near-term deal flow may moderate as firms reassess pricing and growth strategies in a changing economic environment…
