The wealth and asset management industry is in the midst of structural changes to its business model. A growing number of forward-thinking registered investment advisors (RIA) and money management firms are using this fundamental shift to expand market share through mergers and acquisitions despite today’s challenging economy.

After hitting record-high transaction volumes in 2022, M&A activity in the RIA sector has cooled this year. Fewer companies are changing hands due to several factors, most notably rising interest rates, turbulent securities markets (including a historic bond meltdown), and stubborn inflation, which is putting downward pressure on the value of assets under management, and operating profits.