David DeVoe, founder of the consultancy DeVoe & Company, suggests the slowdown stems from owners delaying sales to navigate macroeconomic and geopolitical turbulence. While the industry maintains a long-term appetite for consolidation driven by the need for scale and succession planning, current external shocks have disrupted the momentum built during a record-setting first quarter. Deals that reached the market this year were often initiated 6 to 18 months ago, before the latest wave of volatility.
US Advisory Firms Hit Pause on Mergers Amid Market Volatility
Seventy-two transactions were announced by September 22, signaling a 19 percent drop compared to the same period last year. This decline marks the potential end of a seven-quarter streak of record-breaking activity in the US registered investment advisor space as market instability forces firm owners to rethink their exit timelines.
Market participants have been reactive to a series of economic pressures, including tariff announcements in early 2025 and the regional conflict involving Iran in March. These events triggered spikes in the VIX volatility index comparable to the onset of the pandemic, prompting advisors to step back from the negotiating table. Despite the downward trend noted by DeVoe, other industry observers offer a varying perspective; ECHELON Partners reported 120 transactions in the second quarter alone, suggesting that while the pace has cooled from historic highs, the underlying deal flow remains robust.
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