Wealth Management's New Playbook: Tech and Scale Drive M&A Frenzy

MINNEAPOLIS, MN – December 09, 2025 – In a move that sends another strong signal across the financial advisory landscape, national wealth management firm Wealth Enhancement announced its acquisition of L.M. Kohn & Company, a Cincinnati-based hybrid RIA with over $2.2 billion in client assets. The deal, which closed on December 6, pushes Wealth Enhancement’s total client assets past the $131 billion mark, further cementing its position as one of the industry's most formidable consolidators.

While the headline numbers are impressive, the real story lies beneath the surface. This acquisition is not an isolated event but a prime example of the powerful forces of technology, scale, and strategic specialization that are fundamentally reshaping the independent wealth management sector. As smaller firms grapple with the rising costs of technology and compliance, and larger players seek to expand their geographic and service footprints, the industry is undergoing a period of intense, record-breaking consolidation.

The Relentless March of Consolidation

The acquisition of L.M. Kohn is the latest in a string of deals for Wealth Enhancement, which has completed nearly 60 acquisitions, with a significant acceleration in recent years. But this activity is reflective of a much broader trend. The first half of 2025 alone saw 132 transactions in the Registered Investment Advisor (RIA) space, with some industry analysts projecting the full year could see a record-breaking 440 deals.

This M&A frenzy is being fueled by a perfect storm of factors. A generation of founding advisors, like L.M. Kohn's Larry Kohn who started his firm in 1990, are now looking toward succession planning, creating a steady supply of established firms for sale. Simultaneously, an influx of private equity capital—backing an estimated 72% of all RIA deals in 2025—has created a class of deep-pocketed "aggregator" firms like Wealth Enhancement, which have the resources and mandate to pursue aggressive growth.

"Larry Kohn has built a strong legacy of exceptional service and comprehensive wealth management for more than three decades," said Jeff Dekko, Chief Executive Officer of Wealth Enhancement, in a statement that underscores the value placed on established, reputable firms. The goal for acquirers is not just to absorb assets, but to integrate proven talent and trusted client relationships into a larger, more efficient platform.

Technology as the Catalyst for Scale

At the core of this consolidation wave is the escalating technology arms race. In today's market, providing comprehensive financial advice requires a sophisticated and expensive technology stack. This includes everything from advanced financial planning software and portfolio management systems to client relationship management (CRM) platforms and data analytics tools that enable hyper-personalization. For a mid-sized firm, the cost and complexity of building and maintaining this infrastructure can be prohibitive.

This is where scale becomes a decisive competitive advantage. Large national firms can spread the high fixed costs of technology, compliance, and marketing across a much larger asset base. They can invest in proprietary systems, like Wealth Enhancement’s team-based "Roundtable™" and "UniFi" processes, which are designed to standardize excellence and deliver a consistent, high-quality client experience nationwide.

For a firm like L.M. Kohn, joining a larger entity provides an immediate upgrade. As founder Larry Kohn noted, the partnership gives his clients "access to even more sophisticated tools, services, and specialists." This move allows his team to offload central administrative functions and focus on what they do best: building client relationships and providing advice. In essence, the acquisition model allows smaller firms to plug into a national-level operating system, gaining technological capabilities that would be nearly impossible to develop on their own.

The Strategic Value of Niche Expertise

While technology and scale provide the engine for consolidation, the most successful deals are driven by smart strategic fits. Wealth Enhancement’s acquisition of L.M. Kohn is not merely a land grab for assets; it’s a calculated move to deepen its regional presence and acquire specialized expertise. With its Cincinnati headquarters and offices in Georgia, Iowa, and Michigan, L.M. Kohn provides Wealth Enhancement with a stronger foothold in key markets across the Midwest and South.

"L.M. Kohn's planning-first philosophy complements our strategic vision, making them a great addition to our firm," noted Jim Cahn, Chief Strategy Officer of Wealth Enhancement. "Through this acquisition we'll be strengthening our national presence."

Furthermore, L.M. Kohn brings a valuable specialization in small business benefits consulting. This niche service adds a new dimension to Wealth Enhancement’s offerings, allowing the larger firm to better serve a critical and often underserved market segment. This strategy—acquiring firms with deep roots in a community and specialized capabilities—allows national players to grow without appearing as a faceless monolith, instead weaving a network of local and specialized experts into their national fabric.

The Client Experience in an Age of Mega-RIAs

The ultimate question in this era of consolidation is what it means for the end client. The promise is clear: clients of acquired firms gain access to a broader suite of services, including sophisticated tax and estate planning, a wider array of investment options, and the security of a large, well-resourced institution. The move from a small, local advisor to a national powerhouse can unlock a new level of financial planning sophistication.

However, this transition is not without its anxieties. Clients often choose smaller firms precisely for their high-touch, personalized service and the deep relationship they have with their advisor. The fear is that this personal connection could be lost within a larger, more systematized corporate structure. Larry Kohn directly addressed this concern, emphasizing the goal is to enhance capabilities "without losing the personalized relationships that set us apart."

Successfully navigating this integration is the key challenge for firms like Wealth Enhancement. Retaining the acquired firm's advisors and client-facing staff is paramount, as they are the keepers of the client relationships. The integration process must be a delicate balance of introducing new systems and resources while preserving the cultural elements and service philosophy that made the smaller firm successful in the first place. For the 23 employees and wider network of advisors at L.M. Kohn, this means adapting to a new culture while leveraging the opportunities that come with being part of a rapidly growing national enterprise. As the industry continues to consolidate, the ability to seamlessly merge technology with the human element of trust will define the winners.