Merging Advice Practices? The Real Risk Isn’t the Numbers — It’s the Fit
Mergers and acquisitions in the financial advice sector are on the rise — and for good reason. Scale brings efficiency, broader capability, and resilience in a changing regulatory and economic landscape. But while the strategic logic of merging is often sound, the execution is where many practices stumble.
The reality is that most advice businesses are built around relationships, culture, and deeply embedded ways of working. These elements don’t show up in a financial model — but they’re often the reason a merger either thrives or quietly unravels.
Beyond the Balance Sheet
Legal and financial due diligence are essential, but they’re only part of the picture. What’s often overlooked is “merge readiness” — the ability of two businesses to integrate not just their operations, but their people, systems, and values.
M&A failures rarely make headlines — but they’re felt deeply within businesses. Global research shows that 70% to 90% of M&A deals fail to achieve their intended goals, largely due to poor cultural alignment and lack of team integration[1].
Staff disengagement, cultural clashes, duplicated systems, and client dissatisfaction are common symptoms of poor integration. These issues don’t just slow growth; they erode trust and momentum.
Without a clear transition plan, even the most strategic merger can become a drain on leadership capacity. And when compliance frameworks and workflows aren’t aligned, the risk of regulatory missteps increases — along with operational inefficiencies.
Successful mergers require alignment across three key dimensions:
Culture: Do the teams share similar values, leadership styles, and client philosophies?
Process & Compliance: Are workflows compatible? Can compliance frameworks be harmonised without disruption? How do we make policies consistent?
Capacity: Do leaders have the bandwidth to manage change while continuing to run the business?
Without clarity in these areas, even well-intentioned mergers can lead to disengagement, inefficiencies, and client attrition.
A Smarter Way to Merge
Forward-thinking advice businesses are beginning to treat M&A not just as a transaction, but as a transformation. This means investing in pre-merger assessments, transition planning, and post-merger integration — with the same rigour applied to financial modelling.
Some innovative approaches include:
Cultural Mapping: Using diagnostic tools to assess cultural compatibility before the deal is signed.
Digital Twin Planning: Creating a virtual model of the merged business to simulate workflows, client journeys, and compliance processes.
Leadership Capacity Audits: Evaluating whether key leaders have the time, tools, and support to lead through change.
These strategies don’t just reduce risk — they unlock the full potential of the merger by ensuring it’s built on a foundation of alignment and readiness.
Help Is at Hand
For advice businesses considering a merger, support is available. Zestt Consulting and Tangelo Advice Consulting offer a collaborative framework designed to address the human and operational sides of integration.
Zestt focuses on people, culture, and change management — helping teams navigate the emotional and behavioural shifts that come with M&A.
Tangelo brings expertise in systems, compliance, and process alignment — ensuring the merged business is scalable, efficient, and future-fit.
The “Fit to Merge Framework”
Our approach starts with a discovery workshop — helping businesses assess their readiness and identify critical gaps. From there, we offer customised transition planning, including IT and HR integration, client engagement strategies, and ongoing support.
This isn’t just about avoiding problems. It’s about unlocking the full potential of your merger — lifting energy, capability, and long-term value.
Don’t Leave It to Chance
M&A is more than a deal — it’s a journey. And like any journey, preparation matters. If you’re exploring a merger, now is the time to ask the deeper questions: not just “can we merge?” but “are we ready to thrive together?”
[1] Source: How culture can unlock M&A performance | EY - UK