Mergers and acquisitions in IFA sector accelerate
The latest research from respected pollsters Opinium indicates a marked increase in merger and acquisition (M&A) activities within the Independent Financial Adviser (IFA) sector. The data shows a surge in consolidation within the industry, with approximately 9% of IFA firms acquiring other businesses since December 2024. This represents a significant uptick from previous figures in February and September of the same year. The survey also suggests a trend of smaller IFA firms exiting the market, with around 17% of sole traders reporting selling part or all of their business in the past year.
Key findings of the survey reveal that 9% of IFA firms have acquired other firms since December 2024, while 16% have merged with another firm by 2024. Mergers have remained steady, with 5% of firms reporting mergers with other companies since December, showing no significant change from September 2024. This trend of acquisitions and mergers among IFA firms may have significant implications for market competition and client service in the coming years.
Alexa Nightingale, the global head of financial services research at Opinium, noted that smaller adviser firms are leaving the market, while larger firms are strategically moving towards acquisitions as they focus on growth and consolidation. The increasing number of acquisitions indicates confidence among larger firms to expand their reach, while smaller firms seek exits or transitions. These evolving patterns are expected to shape the future landscape of the IFA sector and its ability to provide comprehensive services to clients.
Opinium emphasizes the importance of these trends in the industry, highlighting the growing number of acquisitions and the shifting landscape of IFA firms. The data suggests that larger firms are actively seeking opportunities for growth through acquisitions, while smaller firms are opting for exits. The strategic shift towards acquisitions reflects the industry’s increasing focus on expansion and consolidation, which may have far-reaching implications for the sector as a whole.
In conclusion, the recent surge in M&A activities within the IFA sector indicates a trend towards consolidation and growth among firms. The data points to a clear pattern of acquisitions and mergers, with larger firms leading the way in expanding their reach and smaller firms strategically exiting or transitioning. These trends are expected to shape the future landscape of the IFA industry, influencing market competition and client services in the years to come.
