A recent study by Opinium indicates a significant rise in acquisitions among independent financial adviser (IFA) firms, with 9% having acquired other businesses as of December 2024. This reflects a steady increase from 5% in February 2024 and 6% in September 2024, highlighting a growing trend of consolidation in the industry.
Opinium’s latest IFA Barometer report reveals that while acquisitions are on the rise, mergers have remained stable. In December 2024, 5% of firms reported merging with other companies, showing no notable change since September 2024. This suggests that while firms are actively acquiring businesses, they are not necessarily merging at the same rate.
The data underscores a shift in the financial advisory sector, with more firms opting for acquisitions as a strategy for growth and expansion. This trend may be driven by increasing competition, regulatory pressures, or the need for greater efficiency. As the industry continues to evolve, the growing number of acquisitions could reshape the landscape of IFA firms, leading to larger, more robust businesses. However, the unchanged merger rate suggests that firms may still prefer acquisitions over partnerships to strengthen their market position.
