What’s Happening With 401(k) Firm M&A?
In this interview recorded at the Fi360 Conference in Nashville, John Sullivan of 401k Specialist Magazine speaks with David Reich from Hub International about the state of retirement advisory M&A and how it’s shaping the future of the industry.
David Reich notes that M&A activity is rapidly increasing, leading to consolidation among advisory practices much like the trend among recordkeepers. Hub International, where Reich is a key player, is on the acquiring side of this trend. He outlines Hub’s strategic value proposition: leveraging its massive commercial insurance and employee benefits infrastructure (being the fifth-largest in the U.S.) to help retirement advisors acquire clients more effectively.
One of the key advantages Hub offers is access to its broad base of commercial relationships. Many of these clients already have insurance or benefits relationships with Hub, but not retirement plans. This creates a fertile opportunity for advisors who join Hub to cross-sell and deepen client relationships, thereby becoming a “one-stop shop” for financial services.
Reich emphasizes that while some of the current M&A activity is driven by a strong economy and inflows of investment capital, not all aggregation strategies are equal. He advises that advisors evaluate the value proposition and cultural fit when considering M&A opportunities. It’s not just about the money offered, but about long-term growth and client referral potential.
He also clarifies that Hub does not view other aggregators like GRP or RPAG as threats—in fact, some of their advisors use those platforms. The industry remains collaborative, and the most critical success factor continues to be relationships, not just technology or scale.
