Wealth Management Consolidation

How IT and Operational Structure Drive Value in Wealth Management Roll-Ups

The independent wealth management market is consolidating rapidly. M&A deals are multiplying, and platforms are expanding aggressively. But the arbitrage on entry and exit multiples is narrowing. To maintain attractive returns, value must increasingly be created after the deal—through execution, not just acquisition.

This shift requires wealth management groups to professionalize their operations, centralize key data flows, and build an IT backbone that can absorb growth without sacrificing margin or compliance.

In a consolidating wealth management market, valuation will come from industrialisation, not financial engineering.

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As the roll-up strategy matures, buyers can no longer rely solely on entry multiple compression. Operational gains, standardisation, and tech enablement become the real drivers of EBITDA improvement. But most wealth management platforms were not built with scale in mind.

To capture value, four levers must be activated—each requiring a robust data strategy and a coherent IT stack:

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1. Centralise and optimise insurer agreements

• Map and harmonise retrocession terms across entities
• Track margins by product and partner
• Negotiate improved group-wide conditions based on aggregated volumes

2. Simplify and standardise the product offering

• Reduce the number of referenced products
• Build a unified product catalogue
• Improve advisor efficiency and compliance through a more navigable, consistent offering

3. Build high-value service lines beyond asset allocation

• Develop expertise in tax structuring, business-owner advisory, estate planning
• Shift part of the value proposition towards fee-based services
• Recruit and retain specialised profiles to sustain this shift

4. Rethink commission and commercial analytics

• Implement a group-wide CRM
• Monitor opportunity pipelines, product sales, client profitability and advisor performance
• Industrialise sales tracking and coaching mechanisms

The IT Stack Required

To support these levers, a scalable IT stack must be implemented:

• Core data layer: Cloud-based data hub (Azure, GCP, AWS, Snowflake)
• Core business tool: Harvest Suite (currently dominant in the French market)
• Finance system: Sage 1000 or XP
• BI & Reporting: Power BI or equivalent

Harvest remains a near-monopoly in core operations for wealth managers, but value creation lies in orchestrating everything around it—especially data and reporting layers.