For years, the M&A narrative in the RIA space has centered around the rise of large, usually private equity-backed aggregators.
To be fair, this cohort of buyers makes for the best headlines. These well-capitalized firms have brought scale, technology and institutional support to independent advisors, helping professionalize succession and drive consolidation. Not to mention, they’re willing in many cases to pay top dollar to roll up RIAs. Their growth has only accelerated, and all signs point to that trajectory continuing for the foreseeable future. They remain arguably the best at what they do, delivering unmatched infrastructure, consistency and depth of service for firms that value those capabilities.
But while the top of the market continues to scale, there is a quieter, equally important shift taking place further downstream.
A growing tier of small to mid-sized buyers, often managing less than $10bn, has emerged with compelling models. Many are founder-led. These firms are winning deals based on culture, terms and local presence. They often differentiate themselves from their larger competitors by offering flexibility, whether in transaction structure, transition planning or life after the deal.
These firms aren’t trying to look like aggregators. In fact, some have gone so far as to ask that our agreements exclude any marketing clause allowing us to publicize the transaction. They’re focused primarily on trust and fit rather than public visibility.
Because many of these deals are never announced, the level of M&A activity among lower- to middle-market RIAs is often underestimated. There are more transactions of this kind happening than the industry realizes, and they’re being done on seller-friendly terms.
As this segment grows, sellers are benefiting from real choice. Rather than only looking at the largest firms with the most resources, sellers can increase their scope by evaluating potential buyers that are more likely to compete on flexibility.
This isn’t only a response to market demand. It’s a signal that the industry is maturing. Buyers are continuing to evolve, offering more nuanced solutions that go beyond infrastructure and pricing to meet the personal and professional needs of founders.
What stands out in the mid-market is how dramatically deal structures can differ based on flexibility. In many cases, local or regional buyers are able to offer a transaction story that feels more familiar, minimizing disruption and keeping the client experience as unchanged as possible. While some buyers emphasize adding new services and capabilities, others win by preserving the status quo, positioning continuity as the differentiator. For sellers, this often means accepting a lower payout or multiple in exchange for cultural alignment, smoother client transitions, and outcomes that protect the advisor-client relationship. In these circumstances, the post-deal structure that feels most familiar can become the winning ticket.
The expansion of this middle market is creating a healthier, more balanced M&A ecosystem. Founders can now craft succession plans that reflect a higher percentage of their goals without compromising on values. Advisors gain more autonomy in shaping their careers, supported by leadership paths and meaningful equity. Clients benefit from more personal, values-aligned service.
Meanwhile, buyers are seeing stronger retention and smoother transitions because of a heightened focus on cultural alignment and advisor/staff satisfaction. With more platforms competing across more dimensions, the entire system improves. That rising standard benefits everyone.
The dominance of large aggregators isn’t ending, but it’s no longer the only story. Small and mid-sized firms are shaping the future of RIA M&A in quieter, but equally powerful ways. They’re completing transactions on terms that work well for sellers, often without seeking the spotlight. And in doing so, they’re raising the bar for the entire industry.
The activity is real. The opportunities are growing. And for many advisors weighing a potential transaction, the best fit might be with a buyer you’ve never heard of.
Originally published on CityWire
This content has been republished with proper attribution.