Tips for Financial Advisors Looking to Grow Through M&A
Mergers and acquisitions (M&A) can be a smart, strategic way for financial advisors to grow — fast. But not every opportunity is the right one. The key to a successful acquisition lies in identifying a business that complements yours, aligns with your long-term vision, and creates real value for both you and your clients.
At OneSeven, we work closely with advisors to help them navigate every stage of the acquisition process — including the critical first step: identifying the right business to acquire. Here are the top things to look for when evaluating a potential acquisition:
- Client Base Compatibility
The most valuable part of an advisory business is its clients — so it’s essential that the client base you’re acquiring is a good fit for your firm.
Ask yourself:
- Do these clients have similar demographics or financial needs as the clients I already serve?
- Are their goals aligned with the services and solutions I specialize in?
- Will they respond well to my firm’s approach and culture?
A mismatch in client expectations can lead to low retention post-acquisition, so it’s important to prioritize compatibility. OneSeven helps advisors evaluate these dynamics and create transition strategies that build trust with new clients from day one.
- Cultural and Philosophical Alignment
Beyond numbers and metrics, culture matters. A firm may have impressive AUM or revenue, but if the business philosophy, values, or communication style differs drastically from yours, the integration can become complicated.
Look for a business that:
- Shares your client-first mindset
- Operates with similar ethics and professional standards
- Treats their team and clients the way you do
A strong cultural fit leads to smoother transitions — not just for clients, but also for employees, systems, and workflows. At OneSeven, we believe that when firms are aligned in values and vision, the path to success is much clearer.
- Operational Synergies
Before making a move, look closely at how the potential acquisition runs its operations. Consider:
- Technology stack (CRM, financial planning tools, custodians)
- Team structure and responsibilities
- Compliance processes
- Billing models and service tiers
The more compatible the systems, the easier it will be to integrate — which saves time, money, and stress. If there are differences, are you prepared to adapt or invest in training and new systems? OneSeven supports advisors with the tools and operational support needed to merge efficiently and effectively.
- Financial Health and Deal Structure
Don’t just look at top-line revenue or AUM. Dig into:
- Revenue stability and fee models
- Client retention history
- Profitability and cost structure
- Any outstanding liabilities
You’ll also want to understand the seller’s motivations and desired deal structure. Are they exiting completely, or hoping to stay on during a transition? Is seller financing on the table? Having clarity on the financials and the expectations of all parties helps avoid surprises later on.
Our team at OneSeven provides hands-on support to evaluate financials and negotiate terms that align with your business strategy.
- Growth Potential
The right acquisition isn’t just about what you’re buying today — it’s about what you’re building for tomorrow. Ask yourself:
- Will this acquisition open up new markets or client segments?
- Can you cross-sell services or improve margins?
- Is there opportunity to scale further?
A well-aligned acquisition should serve as a springboard for growth, not just a short-term gain. That’s why OneSeven works with advisors to think big and build long-term strategies for expanding their impact and income.
Final Thoughts
Acquisitions are exciting, but they require discipline, strategy, and the right partners to be successful. Identifying the right business to acquire is about more than just numbers — it’s about finding a firm that fits your culture, complements your services, and positions your business for sustainable growth.
At OneSeven, we help advisors navigate the M&A landscape with confidence — from identifying targets to negotiating terms to ensuring a smooth transition.
Ready to grow through acquisition? Connect with our Chief Growth Officer, Adam Blumenthal.
