Staffing & Culture | 01.30.26

Firms Use Equity Stakes To Retain Top Advisor Talent, Drive M&A

by: Tobias Salinger

Internal equity deals, where financial advisors buy stakes in their own firms, are becoming a larger share of wealth management mergers and acquisitions, as firms seek to retain top talent and plan succession, according to a 2025 study by Succession Resource Group. Analyzing 171 transactions, the report found rising valuations, fewer potential buyers and growing use of internal transactions unrelated to retirements. These deals boost advisor compensation and long-term commitment while helping firms manage succession earlier. Private equity funding, lower capital costs and strong markets pushed average EBITDA multiples to nearly 10x, reinforcing equity participation, phantom equity and seller financing as key retention tools.

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