2025 Mid-Year Financial Services Sector M&A Overview: Key Trends and Insights
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The Australian financial services sector remains one of the most dynamic and strategically important areas of mergers and acquisitions (M&A) in 2025. Contributing approximately $187 billion annually—around 9.3% of Australia’s GDP—the sector has demonstrated remarkable resilience and ongoing consolidation despite challenges such as elevated interest rates, regulatory reforms, and global economic uncertainty.
Robust M&A Activity Across Multiple Subsectors
Over the past five years, the sector has experienced strong transaction activity driven by strategic acquisitions across wealth management, financial planning, mortgage broking, and funds management. The mid-market segment, covering deals between $2 million and $1 billion, has been particularly active, with businesses commanding EBITDA multiples ranging from 4x to 10x. Wealth management platforms and integrated financial services businesses typically achieve the highest valuations, reflecting their recurring revenue streams and operational scale.
Key Drivers Shaping the Market
Several factors are fueling the sector’s M&A momentum:
Regulatory Reform and Compliance: Following the Royal Commission into Banking, Superannuation, and Financial Services, increased compliance requirements have encouraged consolidation. Smaller operators seek scale to meet regulatory demands, while larger firms acquire businesses with strong governance frameworks.
Technology and Digital Transformation: Financial services companies are investing heavily in technology to improve client engagement and operational efficiency. Acquisitions increasingly target firms with advanced digital platforms and fintech capabilities.
Client-Centric Advice Models: The shift towards holistic, client-focused advice is reshaping competitive dynamics. Businesses are expanding service offerings and geographic reach through acquisitions to better meet evolving client needs.
Landmark Transactions and Domestic Consolidation
Noteworthy deals include Count Limited’s $45.3 million acquisition of Diverger Limited, which created a diversified financial services platform with over 550 advisers and enhanced technology solutions. Fiducian Group’s $12.6 million purchase of People’s Choice Credit Union’s financial planning business expanded its funds under advice by $1.1 billion, strengthening its national footprint. Additionally, AZ NGA’s strategic partnership with Oaktree Capital, involving a $240 million investment, is set to accelerate acquisition and integration activity across its network.
What This Means for Buyers and Sellers
For sellers, building recurring revenue streams, investing in technology, and maintaining strong compliance frameworks are critical to maximizing valuation. Buyers should focus on strategic acquisitions that provide scale, operational synergies, and enhanced service capabilities.
Click here to read the report and gain a comprehensive understanding of recent transactions, valuation benchmarks, and strategic insights shaping Australia’s financial services sector.
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