What 2025 Taught Us – And What 2026 Will Demand

By Fiona Ettles, Partner at FinConnect

If 2024 was the year the market recalibrated, 2025 was the year it moved. Fast. We’ve seen sellers get more sophisticated, buyers get bolder, and the realities of staffing and compliance start to reshape the way firms plan for the future. 

Here’s what stood out to us in 2025 and what we think every firm should be planning for in 2026. 

1. The State of the Market – Trends and Tensions from 2025 

Buyers are more bullish Many are pushing for deals with stronger upfront payments, and a renewed appetite for acquisition. But buyers still want certainty, and a seller who has clearly documented their handover expectations, payment terms, and involvement post-sale is more likely to secure alignment. 

Big buyers behave differently when you’re advised Larger acquirers often initiate 1:1 conversations, but their tone (and their offer) changes when the target has representation. And interestingly, they’re not always the highest bidder. Many rely on long-term share schemes or equity retention models to improve their bid. 

Profitability pressures are real Rising costs (people, tech, compliance) are forcing many firms to review pricing structures. That 18% fee increase mentioned earlier this year wasn’t an outlier—it’s becoming a necessity for sustainability. Read that article here.  

Succession is no longer a future problem More owners are proactively exploring internal equity options, even involving professional year students nearing completion. Retaining qualified advisers, especially younger ones, has become a key strategic issue. 

2. Reflections from Tim – Observing the FP Market  

Tim’s been in the thick of deal conversations across the year, and a few things are clear: 

• Bigger firms are rigid. Many large buyers now apply a one-size-fits-all valuation model. It’s efficient, but inflexible. And often undervalues the unique aspects of a firm.  

• Fee per client is king. Buyers are discounting books with smaller or older clients. Higher average fees per client directly translate to stronger pricing. 
  

• Simple structures win. Deals involving only client books and staff (rather than complex equity/share structures) are faster and cleaner. 
  

• Tax planning needs to happen early. Waiting until contract time to resolve tax structuring is too late, it risks delaying or even derailing the transaction. 
  

3. What’s Coming in 2026; Themes to Prepare For 

Leverage tech to empower people Expect a continued push to streamline admin and maximise client-facing time. 

Cybersecurity gets serious With ASIC showing sharper teeth (see recent action against Entireti), compliance with cyber policy requirements is no longer optional; it’s expected. 

Workload realism is here

Older advisers carrying 150+ relationships are discovering that younger advisers are maxing out around 100. Audit quality and risk are real issues when expectations aren’t aligned with reality. 

Compliance burden continues

More firms are introducing internal compliance roles, peer reviews, and formal QA. It’s expensive, but the upside could be a better capitalisation rate in future valuations. 

Self-licensing may re-emerge Many firms parked the idea during recent transitions, but we expect to see renewed interest—particularly where third-party compliance frameworks provide a safety net. 

Final Thoughts... 2025 reminded us that firms who plan early, document clearly, and value their people are the ones best positioned to thrive. 

Wishing you a happy, safe, and refreshing Christmas, 

Fiona & Tim