Why RIA M&A Slowed in the Third Quarter

Even the hot RIA mergers and acquisitions market needs a cooldown every once in a while. 

After seven straight quarters of transactions setting or tying a record, activity fell 17% in the third quarter of 2026, according to a recent report from DeVoe & Company. There were 77 transactions announced, down from 93 during the same time last year, marking the “clearest break in the market’s upward trajectory since activity plateaued in 2022 and 2023,” the report read. Small sellers, which DeVoe defines as those with $100 million to $500 million in assets under management, accounted for just 36% of total transactions year to date, putting them on pace for the lowest full-year share on record. 

It likely has more to do with sellers pulling back than buyers being out of the market, CEO David DeVoe said, adding that transactions announced today reflect decisions made six to 18 months earlier. Rewind to a period defined by tariffs, AI-related market volatility and geopolitical uncertainty.

“When markets become unsettled, smaller RIA founders often turn their attention to clients and running their businesses rather than pursuing a sale,” DeVoe said. But as conditions stabilize, more of these owners may return to the market, he said. “Buyer appetite remains strong, and smaller RIAs continue to have meaningful opportunities to sell.” 

What Sellers and Buyers Want

RIA owners, including those of smaller firms, have ample opportunity to explore a sale, since there’s still a high supply of well-capitalized, private equity-backed acquirers, said Sam Sphire, vice president at Echelon Partners. They’re often looking to find a succession path for advisors and owners as well as grow, expand their offerings and create career opportunities for employees. 

And increasingly, they’re looking for more than liquidity, DeVoe said. “They want a partner who can help them grow and take some of the burden of running a business off their shoulders.” 

As for the buyers: 

• RIAs are typically attractive to buyers if they have strong organic growth, a fee-based business model with holistic financial planning as the main service, M&A experience and expertise in a specific client niche, Sphire said.
• Leo Kelly, CEO of Verdence Capital Advisors, said his firm’s search starts with people over size or earnings. “Culture is everything to us and is the cornerstone of our growth story,” he said, adding that finding partners who are client-first and growth-minded is also important. 

Respect the Process: Firms that struggle to find a buyer are often not prepared for a sale process, Sphire said. “They may not know their options, what to ask potential partners, how to negotiate through the inevitable challenging moments of a transaction, or how to position the firm, especially if it’s lacking in one or more of the areas that drive valuation.”