Published on wealthsolutionsreport.com on 5/28/2025 | Authored by Allen Darby

How M&A Is Reshaping Wealth Management And Client Experience

Technology Onboarded From Acquirors Can Enhance Efficiency And Personalization At The Same Time

Allen Darby

5th Week Of May, 2025

4 minute read

Allen Darby, Founder & CEO, Alaris Acquisitions

The wealth management industry is experiencing a seismic shift, fueled by an M&A boom. This wave of consolidation is reshaping the client experience, bringing both possibilities and challenges.

From improving efficiency and client service to reevaluating fee structures, managing succession planning and balancing innovation with personalization, RIAs must navigate transformation while prioritizing client relationships. For sellers, integration often aims to gain operational capacity and better technology. Yet they must continue managing day-to-day operations while transforming — striking a careful balance between stability and change.

There are many considerations for RIAs considering a merger or acquisition. The impacts of a deal vary widely. A founder’s experience may differ greatly from that of their employees. While all stakeholders matter, what’s often overlooked by both buyers and sellers is the client experience. That’s why a critical factor in long-term deal success is a clear focus on the client.

Efficiency At What Cost?

Efficiency promises a more streamlined client experience by addressing common operational challenges for smaller advisors — like inconsistent processes and limited protocols. Joining a larger firm can improve service response times and streamline tasks like account openings, transfers or trade execution.

Though some worry this may erode the personal touch, it often does the opposite. Enhanced workflows free advisors to deepen client relationships rather than detract from them. When done right, M&A allows advisors to shift more time toward client service — the heart of their business.

Efficiency gains may include the adoption of new technologies or workflows brought in by the buyer. These changes can feel disruptive at first, but buyers often provide data — such as net promoter scores or retention metrics — to show that operational upgrades lead to better client outcomes.

Consider Savant Wealth Management, a national RIA and buyer using our AI tool, called Lens, to match with compatible sellers. Savant recently evaluated eight newly acquired offices with an average tenure of three years, against six mature offices with an average tenure of 13 years and over $3 million in revenue. The newer offices, once integrated, showed each advisor managing roughly $500,000 more in revenue.

Assuming the average client household generates $15,000 to $20,000 in revenue, this translates to serving an additional 25 to 30 families per advisor — driven by stronger operational support and expanded capabilities.

An Expanded Service Menu

Joining a larger firm — typically managing over $20 billion in assets — gives sellers with under $500 million in assets under management access to enhanced infrastructure, capabilities and processes. These buyers often offer a broader range of services beyond traditional portfolio management, including tax planning, estate planning, corporate trustee services and philanthropic strategies.

This expanded offering increases the advisor’s value proposition. Crucially, it doesn’t compromise personalization.

This expanded offering increases the advisor’s value proposition. Crucially, it doesn’t compromise personalization. Buyers bring in specialized teams to handle these advanced needs, letting advisors focus on core client relationships while offering a more holistic financial solution. The net effect: a deeper wallet share and improved client care.

Fees: Friend Or Foe?

In most acquisitions, a seller’s existing fee schedule is grandfathered. Simply raising fees post-deal would be a non-starter and risk client attrition.

When fees do rise, it’s typically tied to added value. For example, a client paying 1% may opt into a new estate planning service that adds 0.25% — but only if they’re receiving something new in return.

This presents a chance for transparency. Advisors can explain how the transaction introduces new capabilities and how those services align with the client’s long-term goals, reinforcing value and trust.

Innovation And Personalization: A Perfect Partnership

The belief that innovation and personalization are in conflict is a misconception. In fact, technology — especially AI, predictive analytics and automation — enhances personalization by helping advisors anticipate client needs more effectively.

Many advisors initially view innovation as a threat to their high-touch service. But when applied thoughtfully, technology improves efficiency and frees time for meaningful client engagement. For instance, if a client service associate previously spent three hours weekly on manual data entry, automation might reduce that to one — freeing two hours for client-facing work.

M&A transitions also prompt deeper conversations between advisors and clients about upcoming changes and benefits. These touchpoints often build trust and strengthen relationships. The future of wealth management isn’t just high-tech — it’s high-touch, with innovation used to elevate human connection.

The future of wealth management isn’t just high-tech — it’s high-touch, with innovation used to elevate human connection.

What Happens To Smaller Firms?

Smaller firms have unique opportunities amid consolidation. Larger firms are essentially scaled-up versions of their smaller counterparts — and they know that advisor-client relationships drive success. Buyers aim to preserve the personal service culture of acquired firms while improving operations with better tools and structured processes.

M&A isn’t just about assets — it’s about aggregating talent and excellence. Savant, for instance, pursues acquisitions to bring in new people, skills and ideas. Through M&A, they’ve added specialists to serve university professionals, equity-compensated executives, divorcees and aging clients. This expertise is shared across offices to elevate service quality and enrich the client experience firmwide.

Thriving In A New Era

M&A is reshaping wealth management not just in scale, but in service and relationship quality. For clients, the future holds a blend of advanced technology and personalized care. Leading firms will preserve the advisor’s personal touch while leveraging tools that enhance the client journey.

The most successful firms won’t just offer more — they’ll offer better, built on transparency, innovation and deep dedication to client needs.

Allen Darby is Founder and CEO of Alaris Acquisitions.

https://wealthsolutionsreport.com/2025/05/28/how-ma-is-reshaping-wealth-management-and-client-experience/