Originally published on MoneyMarketing
5th February 2026
https://www.moneymarketing.co.uk/opinion/roderic-rennison-how-ai-cliches-mask-the-real-ma-risks/
AI is now an integral part of our lives. I still write my articles and blogs “from scratch” but I am aware that others increasingly rely on AI to do much of the work for them. So, on this occasion, I began by typing into Google: “What is the M&A outlook for UK financial planning firms and wealth managers in 2026?”
Within seconds, the headline response appeared:
“The outlook for mergers & acquisitions (M&A) among UK financial planning and wealth management firms in 2026 is optimistic, with robust activity expected to continue, driven by strategic consolidation, an abundance of private equity and the need for technological advancement, particularly MI. Deal volumes may see steady growth, while deal values are expected to remain high due to an ongoing focus on scale and efficiency.”
I do not think this somewhat cliché-ridden response — essentially an amalgam of what others have already written about M&A — is wrong. But to be genuinely helpful, it needs unpacking. What lies behind these words, and what emerging trends really matter?
At Catalyst Partners, my three fellow partners and I strongly believe that one of the key ingredients in improving outcomes for our clients — the owners of financial planning firms — is the depth of research we undertake into acquirers and the ecosystem that supports them.
This includes platforms, fund managers, compliance consultants, solicitors, tax advisers and strategic consultants. What follows is a distillation of what our conversations and research have told us in recent months.
Acquirers are now far more focused on obtaining high-quality data before even committing to an indicative offer.
This is driven partly by private equity backers having a clearer understanding of what “good” looks like, and partly by the FCA’s increasingly proactive stance.
The Consumer Duty has had a material impact on the focus of due diligence, while the FCA’s Consolidator Review has sharpened attention on holding company structures, group debt, solvency, integration capability, risk management and governance.
The Change in Control process has also become more demanding, with both new and established acquirers being asked to provide far more detailed information.
Firms that can tick most of the boxes — quality data, robust Consumer Duty processes, coherent client segmentation, strong people and a compelling growth strategy — are attracting higher valuations and a wider pool of potential buyers.
We do not agree that more firms have become “unsaleable”. While historic issues can reduce valuations or limit buyer choice, it is rare for there to be no buyers at all. What matters is knowing which acquirers are active, and what type of deals they are pursuing.
Firms that rush to market without reviewing their proposition and processes risk either failing to attract a quality acquirer or securing an unsatisfactory outcome.
Market knowledge has never been more vital, and vendors who choose not to engage external support increase the likelihood of — to borrow the FCA’s phrase — a “poor outcome”.
While M&A will remain central to consolidators’ strategies in 2026, many are also stepping up investment in adviser academies and adviser recruitment.
Viewed through the lens of a firm contemplating a sale, the priorities are clear: quality data, up-to-date processes and the right advisers. One area that is still often overlooked, however, is due diligence on the acquirer.
This has become increasingly important given the risk of unresolved FCA issues, including protracted Change in Control applications. Better knowledge of an acquirer at the outset can lead to different decisions — and a quicker, smoother outcome.
Consolidation will continue at pace in 2026. But it has never been more important to plan and prepare before initiating any sale process.
Roderic Rennison is a founder and partner of Catalyst Partners