Podcast Summary: Navigating M&A Decisions in a Changing Advice Landscape

Podcast: Managing Your Practice by Dimensional Fund Advisors
Host: Katherine Williams
Guests:

• Chris Frieden, Partner, Alston & Bird
• Brian Hamburger, Founder & CEO, Market Counsel Consulting; Chief Counsel, Hamburger Law Firm
  Date: January 16, 2026

Episode Overview

This episode delves into the practical realities of mergers and acquisitions (M&A) in the wealth management and financial advice sector. Host Katherine Williams is joined by two seasoned experts—Chris Frieden and Brian Hamburger—to discuss best practices, blind spots, and risks in M&A transactions, succession planning, and market consolidation. The conversation centers on what drives transaction activity, how advisors can position their businesses for value, and how to avoid common pitfalls when contemplating a deal.

Key Themes & Discussion Points

1. The Evolving Drivers Behind M&A Activity

00:00–10:35

• Historically, most advisory firms weren’t considering selling; internal transitions were preferred.
• Today, external factors—particularly robust private equity interest and high volume of unsolicited approaches—are major drivers of M&A activity.
• Many owners sell not from a deliberate, strategic plan, but because of persuasive outside interest.

Quote:
"What's really stood out to me over the past few years... is that a meaningful amount of transaction activity isn't being driven by founders who are being strategic or proactively deciding to sell. It's being driven by hawkers and outbound sales efforts."
—Brian Hamburger [08:24]

• This trend has reset valuation expectations and increased deal complexity (earnouts, tighter controls, etc.).

Memorable Statistic:
The average advisor receives about 17 inquiries per month from potential buyers or investors. [10:35]

2. Scale, Specialization, and the Value Narrative

11:02–14:54

• The influx of capital and competition places value on scale, though its profitability impact is still being observed.
• Large firms have access to better resources, but small, niche, or specialized firms can still thrive.
• Identity, mission, and differentiation matter as much as (or more than) sheer size.

Quote:
"Your firm should have an identity and should stand for something and then normalize that to current market constraints..."
—Brian Hamburger [13:57]

3. Developing and Retaining Next-Gen Talent (G2)

14:54–17:18

• Delaying “equitization” (offering ownership to next-generation leaders) is a common missed opportunity.
• Early and meaningful ownership stakes foster engagement, commitment, and help ensure a smooth succession.

Quote:
"There is a lot of value in ownership and not just economically. I think people feeling like they're partners really translates into kind of an ownership in the way they operate, in the way they work with clients..."
—Chris Frieden [15:48]

• Clear definitions of ownership, control, and decision-making power are critical but often overlooked.

4. Value Drivers, Blind Spots, and the Importance of Early Preparation

18:18–25:44

• Owners often procrastinate on becoming “transaction-ready,” under-preparing for governance, documentation, and key-person risk.
• The “snooze button” on preparation results in lost valuation and tougher deal terms.

Quote:
"One of the biggest blind spots ... is the tendency to keep hitting the snooze button on transaction readiness. Owners often underestimate just how much value is lost by not preparing a business two to three years ahead of a potential sale."
—Brian Hamburger [18:18]

• Common detractors from value:
  • Client/revenue concentration
  • Aging client demographics
  • Poor documentation
  • Underdeveloped next-generation equity plans

5. Outside Capital: Opportunities and Cautions

26:32–33:24

• Outside investment (private equity, minority or majority partners) is less “scary” than it once was and can bring discipline, resources, and new capabilities.
• The relationship between owner/investor and client utility must be balanced to avoid commoditization or loss of firm culture.

Quote:
"If you look at it through the client lens, outside investment becomes far more debatable. Has outside investment really made the utility of investment advisors any greater?"
—Brian Hamburger [29:36]

• Importance of structuring deals so that founders retain enough control to stay client-focused, even with new shareholders.

6. Regulatory Trends and Industry Headwinds

37:19–39:35

• Growing firms will face more robust regulation in the coming years (compliance, privacy, cyber, client consents).
• Advisors must develop a compliance mindset in addition to entrepreneurial skills.

7. Practical Timing for Advisors—When to Seek Counsel

33:24–35:49

• Engaging legal and strategic counsel “when it’s just an idea” is best—years ahead of a sale or change.
• Early advice and planning optimize choices and drive better results; late engagement limits options.
• The same advice holds for both buyers and sellers.

Quote:
"There's not a time to bring an experienced, objective advisor in too early...when they say 'here's an idea...,' that's the conversation we want to engage in very early."
—Brian Hamburger [34:02]

8. Looking Forward: Challenges and Opportunities

39:45–42:16

• Buyers are becoming more sophisticated, with clearer investment theses and stricter diligence—often outpacing sellers’ readiness.
• The M&A landscape is becoming more nuanced: structured deals, more protective terms, and buyers with different strategic goals (scale, distribution, new client segments).
• Founders must develop a realistic sense of their business health and value—and align expectations with market reality.

Quote:
"There's a growing gap between how healthy owners believe their businesses are and how buyers are actually underwriting these investments."
—Brian Hamburger [40:00]

Notable Quotes & Memorable Moments

| Timestamp | Speaker | Quote | |-----------|---------|-------| | 08:24 | Brian Hamburger | "Meaningful transaction activity isn't being driven by founders who are being strategic... It's being driven by hawkers and outbound sales efforts." | | 13:57 | Brian Hamburger | "Your firm should have an identity and should stand for something..." | | 15:48 | Chris Frieden | "There is a lot of value in ownership and not just economically..." | | 18:18 | Brian Hamburger | "One of the biggest blind spots... is the tendency to keep hitting the snooze button on transaction readiness." | | 34:02 | Brian Hamburger | "There's not a time to bring an experienced, objective advisor in too early..." | | 39:03 | Chris Frieden | "As a first step, I would say client first. If you put your client first, you're always going to do the right thing." | | 40:00 | Brian Hamburger | "A growing gap between how healthy owners believe their businesses are and how buyers are actually underwriting these investments." |

Segment Timestamps

• [00:00] Introduction of guests and overview
• [02:20] Backgrounds and drivers for M&A work
• [08:24] Outbound acquirer interest driving activity
• [10:35] Survey data: volume of buyer contacts
• [11:02] The role of scale, differentiation, and firm identity
• [14:54] Handling next-generation ownership (G2)
• [18:18] Blind spots and pitfalls in readiness and value
• [23:31] Impact of client/revenue concentration on deal value
• [26:32] The evolving role of equity partners/capital investment
• [31:04] Risks of industry commoditization
• [33:24] Timing and importance of early advisor engagement
• [37:19] Regulatory outlook and compliance headwinds
• [39:45] What buyers value vs. what sellers think
• [41:36] Types of buyers and their motivations
• [42:40] Final perspectives and wrap-up

Takeaways for Advisors

• Don’t wait—begin M&A and succession planning several years in advance, not just before a transaction.
• Be realistic about your firm’s value, growth sources, risks, and documentation.
• Engage legal and consulting experts early, even just to discuss initial ideas.
• Outside investment can be a catalyst for growth, but must be structured to retain what makes your firm special.
• Focus on a client-first mentality—regulatory, reputational, and business health follow from service quality.
• Expect continued industry consolidation, increased regulation, and more sophisticated, demanding buyers.

For further info:
Find Chris Frieden and Brian Hamburger on LinkedIn. Explore Dimensional Fund Advisors’ resources at dimensional.com.