M&A activity in Q2 surpassing previous quarter levels

1 June 2025 |
Financial planning

In the realm of financial advice mergers and acquisitions, the second quarter of 2025 has shown a significant increase compared to the previous quarter. Notably, LGT Crestone has finalized its acquisition of the high-net-worth financial advisory business of Commonwealth Bank. This acquisition has led to LGT Crestone’s assets under advice growing by $5 billion, reaching a total of $40 billion with 138 advisers on board.

The second quarter of 2025 has seen an upsurge in merger and acquisition activities, with at least eight deals taking place as opposed to the five in the first quarter of the year. The momentum is expected to carry on into June as companies gear up for the end of the 2024-25 financial year.

Earlier this year, Pitcher Partners conducted a study revealing that 97% of Australian dealmakers are actively seeking M&A opportunities. This is particularly prevalent in mid-market firms where founders are nearing retirement. Succession planning has emerged as a key driver of mid-market M&A in Australia, with 85% of dealmakers identifying it as the primary motivator in 2025.

In a recent development, Ironbark Investment Partners acquired a Sydney-based family office business, Mercury Private, at the close of May. This acquisition underscores Ironbark’s strategic move to enhance its delivery of high-net-worth advice. Mercury Private, a boutique wealth management firm established in 2015, focuses on providing services to high-net-worth individuals and family offices.

The Australian Wealth Advisors Group (AWAG), listed on the ASX, has been actively pursuing merger and acquisition activities. Recently, AWAG made a double investment, expanding its portfolio and market presence. The group’s strategic growth plan includes strengthening its position in the financial advice sector through targeted acquisitions.

As the financial advice sector continues to witness a flurry of merger and acquisition activities in the second quarter of 2025, industry watchers anticipate further deals and partnerships in the coming months. The landscape of financial planning is evolving, driven by changing market dynamics and the strategic goals of firms looking to capitalize on growth opportunities.

Overall, the increased pace of M&A in the financial advice sector indicates a shifting landscape where firms are seeking strategic partnerships, acquisitions, and opportunities to expand their services and client base. The trend of consolidation and strategic alliances is expected to continue as companies navigate the evolving regulatory environment and changing client needs.