Survival of the Fittest: Welcome to the Era of Smart Partnering
This opinion piece by David Selig, CEO of Advice Dynamics Partners, was originally published on Citywire RIA, June 9, 2025, with the title: “Opinion: The RIA market has entered the era of ‘smart partnering’”
For decades, independent RIAs set themselves apart from the wirehouse world by doing things differently, with more client-centricity, more transparency and more alignment. But today, many of those once-nimble firms find themselves at a crossroads, pressured by rising complexity, stagnant organic growth and succession questions that no longer have obvious answers.
We’re witnessing a transformation. The firms that will thrive in the years ahead won’t be defined by their size or legacy alone, but by their adaptability, their foresight, and most of all, their partnerships.
Organic growth alone won’t cut it anymore.
Let’s be honest. In this macroeconomic environment characterized by volatile markets, high interest rates and clients sitting in cash, it’s harder than ever to grow AUM organically. Firms that once rode strong tailwinds are now facing headwinds. The result? Growth has become more expensive, and, for many RIAs, more elusive.
As Rise Growth Partners managing partner Joe Duran noted recently, the largest independent firms are starting to resemble the wirehouses they once disrupted. Complexity creeps in, and the very differentiation that made RIAs successful becomes harder to maintain.
This isn’t the end of independence, though. It’s a call to evolve.
David Selig, CEO of Advice Dynamics Partners.
The era of smart partnering
We are firmly in what I call the ‘era of smart partnering.’ Not every RIA should sell, but every RIA should reassess its vision and its strategy; firms that do nothing are the ones most at risk of being left behind, or worse, having their fate decided for them.
So, what does smart partnering mean? In our view, RIAs that want to succeed in the long term should prioritize the following qualities when evaluating potential partnerships with other firms:
Access to tools and talent: Scale matters more than ever. RIAs need better technology, deeper compliance resources, operational leverage and the ability to offer specialized planning beyond the basics.
A plan for G2: Grooming the next generation isn’t optional, it’s a strategic imperative. Internal succession without infrastructure is fantasy. If you don’t build a path for rising talent, someone else will.
Differentiation through depth: Your value proposition needs to go beyond ‘we care more’ or ‘we’re fiduciaries.’ You must prove your unique ability to solve client problems, especially in complex, multi-generational or tax-sensitive cases.
De-risking the enterprise: Whether you plan to sell in five years or ‘die with your boots on,’ a lack of succession and contingency planning is the single biggest risk to firm value, and to your legacy.
We’ve seen it play out repeatedly: firms that delay planning are often the ones forced to transact on someone else’s timeline, for someone else’s price.
Ask the hard questions
Too many RIA founders wait until something external — market volatility, a health scare, an unsolicited offer — forces their hand. Instead, I encourage leaders to ask a simple but tough question now:
“What do I need to do to thrive — not just survive — in the next decade?”
This isn’t just about an M&A transaction. It’s about strategic clarity: understanding your firm’s true strengths and vulnerabilities, as well as what kind of partnerships, if any, will make it stronger.
That could mean a tuck-in, a minority investment, a merger of equals, or perhaps staying the course. All of the above require deliberate planning for continuity and growth.
Which firms will win?
The winners in this new era will:
Plan ahead to avoid panic mode.
Recognize their blind spots—and fill them.
Choose partners strategically, not reactively.
And, perhaps most importantly, remain honest with themselves about what it will take to build resilience into their business.
If M&A seems the right way forward, remember that a good transaction is not about timing the market. It’s about being ready when the right opportunity aligns with your goals. That readiness—financial, operational, emotional—is what separates the sellers who exit well from those who simply exit.
In nature, survival of the fittest isn’t about being the biggest or the strongest. It’s about being the most adaptable.
For RIA founders and leaders, now is the time to adapt, to partner with intention, to plan with discipline, and to lead with a clear-eyed vision for what comes next.
Because the future belongs to the firms that design it.
This article was written by David Selig, founder and CEO of Advice Dynamics Partners. David has over twenty years of experience in M&A, management consulting and financial services. He serves as a champion and advocate for Advice Dynamics’ clients, as he shepherds them through their complex transactions.