UK Financial Services M&A, A Seller's Market for Quality

The UK Financial Services sector remains one of the most active corners of the M&A market, but the character of that activity is changing. Wealth management and financial planning have seen a genuine surge, with well over a hundred IFA acquisitions completed in 2025 alone, while insurance broking has cooled from the frenetic pace of recent years.

Sub-sectors including wealth management, IFA and financial planning practices, specialist lending and compliance consultancy continue to attract strong interest from both strategic acquirers and private equity investors.

Two forces are driving the advisory consolidation story. The first is demographic: a large proportion of firm owners are approaching retirement over the next decade, creating a steady pipeline of businesses seeking succession solutions. The second is the professionalisation of the buyer pool; private equity-backed acquirers accounted for roughly three quarters of adviser deals in the first half of 2025, and most are running disciplined buy-and-build strategies rather than acquiring for scale alone.

That discipline shows in the valuations. Businesses with recurring, fee-based income and long-standing client relationships, wealth managers and financial planners in particular, are achieving high single-digit to double-digit EBITDA multiples, while more transaction-led advisory and professional services businesses typically change hands in the mid to high single digits. The gap reflects what buyers are paying for: persistency of income, client retention and a clean regulatory record, rather than headline revenue.

Some deal highlights for 2025 were:

• Walker Crips Group acquired by Phillip Brokerage with a 10.42x EBITDA multiple
• Ensors Accountants acquired by Azets with a 6.64x EBITDA multiple
• One Advisory Group acquired by FRP Advisory Group with a 7.36x EBITDA multiple
• Lowes Quantum Limited acquired by Saltus Group with a 15.07x EBITDA multiple
• Arc & Co Structured Finance acquired by FRP Advisory Group with a 4.56x EBITDA multiple
• Frenkel Topping Group acquired by Harwood Capital with a 9.43x EBITDA multiple

Insurance broking tells a more nuanced story. After several years of intense consolidation, 2025 was the quietest year for UK broker M&A in nearly a decade, with activity concentrated in smaller transactions. This reflects a maturing market rather than falling appetite; many mid-sized independents have already been absorbed, debt is more expensive, and the buyers still active are prioritising strategic fit over volume. For owners of quality broking businesses, fewer competing sellers can work in their favour.

For financial services owners weighing their options over the next 12 to 24 months, the message from the current market is that early preparation is what separates the premium outcomes from the rest. That means a regulatory and compliance position that stands up to detailed scrutiny, management information that demonstrates the quality and persistency of recurring income, and a business that can credibly run without its founder.

At La Salle Corporate, we are actively engaged with buyers and investors across the UK Financial Services sector. We support owners in preparing for sale, enhancing value drivers and navigating transactions to deliver optimal outcomes in the lower mid-market.

If you would like to explore current buyer appetite, valuation benchmarks or preparation for a future transaction, we would be happy to discuss your options with you.

Reach out today to arrange an informal, confidential call.