M&A supply stable despite concerns of education exodus

The merger and acquisition landscape has maintained stability as we move further into 2026, with concerns about a potential mass exodus in the education sector contributing to sustained asset scarcity in the M&A market.

Towards the end of 2026, there was a sense of apprehension among advisers that a significant number of professionals might leave the industry due to an impending education deadline. Both the FAAA and ASIC raised alarms, suggesting that as many as 2,300 advisers could be unable to offer their services. However, the feared “mass exodus” did not materialize, and the actual number of departures was far lower than anticipated. Steve Prendeville, principal of Forte Asset Solutions, reflected that some of the initial estimates seemed exaggerated.

Expressing his doubts about a widespread adviser exodus, Prendeville explained his perspective as a “sellers advocate.” He noted that when businesses were up for sale, education requirements were not the primary motivation for selling. Contrary to expectations of a wave of forced sales, business owners had addressed potential risks well in advance of the deadline.

One of the key factors in preventing a mass exodus was the effective succession planning many practices had implemented. This planning helped reduce the need for urgent sales and mitigated the anticipated crisis. Prendeville highlighted that numerous advisers had transitioned into management or governance roles, or had become owners without being directly involved in day-to-day operations. Succession plans had already brought in a new generation of advisers, ensuring a smooth transition well before the education deadline.

In many instances, minority shareholders or senior advisers had already been integrated into the business structure, eliminating the need for abrupt transactions when the education deadline loomed. The presence of these transitional arrangements alleviated any pressure points that might have necessitated immediate action.

Overall, the M&A market has weathered recent uncertainties well, demonstrating resilience in the face of potential disruptions. Despite initial fears of a significant exodus among advisers, the industry has adapted and prepared itself effectively, ensuring a stable and sustainable environment as we move forward in 2026.