Mergers and acquisitions in wealth management are set to accelerate as firms seek to expand their product capabilities, achieve economies of...

Mergers and acquisitions in wealth management are set to accelerate as firms seek to expand their product capabilities, achieve economies of scale in existing markets and extend into new ones, according to a study by PricewaterhouseCoopers.

The report, from the corporate finance team at the business consultancy, said there are currently many more buyers in wealth management than sellers, which is contributing to a very positive deal pricing environment for those who are selling.

Acquisitions are being accelerated also as a result of attractive growth rates in Asia, the Middle East and Eastern Europe, although the trend in these markets – at least for the time being – is joint ventures/alliance, says PwC.

The report went on to say that poaching teams from other wealth managers is becoming less effective. Wealth managers have sought to restrict the ability of their relationship managers to take clients with them when they leave the firm, which has “institutionalised” the client base, says PwC.

This is fuelling the appetite for acquisition as a more credible route to client acquisition, argues the report.

A more detailed analysis of this report and its consequences for the global wealth management market will be reviewed in tomorrow’s edition of WealthBriefing.