The wealth administration M&A market is on fireplace. Within the first half of 2025 alone, there have been 148 transactions, setting a brand new report for any six-month interval, in accordance with DeVoe & Firm. Constancy Investments equally reported 132 offers totaling $182.7 billion in belongings. Regardless of macroeconomic uncertainties, the wealth administration business is consolidating at an unprecedented tempo.
Nonetheless, amid this frenzy, many sellers are being steered towards blind public sale processes—strategies that prioritize pace and valuation over strategic alignment and cultural match. As somebody with deep expertise in main acquisitions—having spent the final 11 years at one of many nation’s most acquisitive companies and contributing to over 70 accomplished transactions throughout that point—I’ve seen firsthand how blind processes usually overlook essentially the most crucial points of a profitable partnership.
The Blind Public sale Paradox
Blind auctions are designed to maximise competitors and, ostensibly, valuation. But, they usually achieve this on the expense of significant engagement between purchaser and vendor. This lack of early dialogue can lead to missed alternatives to evaluate cultural compatibility, shared values and long-term strategic alignment—components which might be essential for a profitable partnership. In our expertise, a few of the greatest potential companions for a vendor by no means make it previous the early rounds of a blind public sale. An absence of early engagement could cause extremely suitable patrons to step again, both as a result of they’re unwilling to take part in a purely transactional course of or as a result of they’re unable to distinguish themselves in a crowded area. In these instances, sellers could finally choose a accomplice who merely supplied the very best preliminary bid—not the one who may assist maximize long-term development and shopper expertise.
A Private Perspective
In my expertise, essentially the most profitable acquisitions have been these the place we engaged deeply with the vendor from the outset. These conversations uncover nuances in regards to the agency’s tradition, shopper relationships, and long-term objectives—insights {that a} blind public sale course of merely can not present. With out this engagement, sellers threat getting into partnerships which will look good on paper however fail to ship the specified outcomes.
The Price of Blindness
Whereas blind auctions could improve short-term valuations, they usually achieve this by sidelining the very components that contribute to long-term success. Sellers could discover themselves in partnerships the place operational synergies are missing, cultural clashes come up, or strategic visions diverge. These points can erode the worth of the transaction and undermine the agency’s legacy.
Take into account the parallel of medical remedy choices: sufferers are sometimes introduced with a number of choices, every with completely different threat/profit profiles. With out deeper session, they could select primarily based on short-term outcomes or “recognition” moderately than what greatest aligns with their life-style, values, and long-term well being objectives. Equally, in a blind public sale, sellers could choose a accomplice primarily based on headline valuation moderately than the deeper alignment that drives lasting success.
A Name for Warning
Because the M&A panorama continues to evolve, it is crucial that sellers fastidiously contemplate the method they have interaction in. Blind auctions could provide rapid monetary rewards, however they usually overlook the deeper components that contribute to a profitable and sustainable partnership. Sellers ought to search processes that permit for significant engagement, guaranteeing that any partnership aligns with their agency’s values, tradition, and long-term aims.
Within the rush to capitalize on the booming wealth administration M&A market, it is easy to be swept up within the attract of blind auctions. Nonetheless, as we’ve seen at Mariner, essentially the most profitable acquisitions are these the place purchaser and vendor have interaction deeply, guaranteeing a real alignment of values and imaginative and prescient. Sellers ought to beware: the very best bid is not at all times the most effective deal. You solely get to do that as soon as—be sure you and your banker are totally aligned in your most popular strategy and desired outcomes earlier than shifting ahead.
