Industry Insight Report: Investment Banker & Securities Q3-2025
Industry Insight Report: Investment Banker & Securities Q3-2025
Stock market volatility in Q2 2025 has injected new energy into trading desks at major investment banks, driving a sharp uptick in revenue. At Lion Business Advisors, we’ve observed an increase in buyer interest in boutique firms with strong trading revenue, compliance infrastructure, and recurring client relationships. Demand is especially strong for RIAs and hybrid models serving niche markets.
Key Trends This Quarter
US banking giants have seen a surge in markets revenue, totaling $34 billion so far this year, a 17% increase, driven by high-frequency trading amid tariff-fueled stock market volatility. Goldman Sachs reported a 22% jump in Q2 trading revenue, largely from equities financing. IPO activity, previously muted, rebounded modestly in Q2 as market participants sought windows of opportunity amid political turbulence. M&A activity also picked up after a global 12% decline in the first half of the year. For firm owners, these shifts signal renewed interest from strategic and financial buyers targeting volatility-resilient businesses with capital market exposure.
Employment and Wage Trends
Employment in investment banking and securities intermediation remained largely flat, with a 0.8% year-over-year change as of July. This lags the broader private sector’s 3.7% growth. Over the past decade, the industry’s employment has grown by just 7.3%, well below the 13.0% private sector average. Wages showed a similar pattern: average hourly earnings rose only 0.3% year-over-year to $51.76. Over the last three years, wages increased 6.9%, again trailing the 13.4% wage growth across private industries. These numbers suggest a maturing labor market, where firms rely more on productivity and tech investment than headcount expansion.
Industry Forecast
According to Vertical IQ, the US securities brokerages industry is projected to grow at a 6.58% compound annual rate from 2025 to 2029, outpacing overall economic growth. This positive outlook is powered by strong trading revenue, a resurgence in IPOs and M&A, and institutional interest in market-responsive advisory models. No Texas-specific updates were reported this quarter.
Outlook for Q3 2025
We’re currently in a balanced M&A market for investment advisory and securities firms. Strategic acquirers, private equity platforms, and newly capitalized independent advisors are actively pursuing acquisitions. Firms with consistent AUM growth, scalable client servicing models, and clean compliance histories are seeing premium valuations. Buyer appetite remains especially high for RIAs with fee-based revenue, succession-ready leadership, and infrastructure to support regulatory growth. The current environment favors prepared sellers who can demonstrate stability amid volatility.
With volatility comes opportunity, but also increased scrutiny from buyers. If you’re an advisory firm or broker-dealer owner considering an exit, now is the time to understand your value and start preparing.
Have a client who is considering selling? Have them take our free Sellability Score, and we will review the results together.
Lion Business Advisors’ quarterly industry insights incorporate data and trends sourced from internal deal flow and buyer activity, Vertical IQ, and market comparables from platforms such as Axial and BVR (Business Valuation Resources).
Industry Insight Report: Investment Banker & Securities Q3-2025
Stock market volatility in Q2 2025 has injected new energy into trading desks at major investment banks, driving a sharp uptick in revenue. At Lion Business Advisors, we’ve observed an increase in buyer interest in boutique firms with strong trading revenue, compliance infrastructure, and recurring client relationships. Demand is especially strong for RIAs and hybrid models serving niche markets.
Key Trends This Quarter
US banking giants have seen a surge in markets revenue, totaling $34 billion so far this year, a 17% increase, driven by high-frequency trading amid tariff-fueled stock market volatility. Goldman Sachs reported a 22% jump in Q2 trading revenue, largely from equities financing. IPO activity, previously muted, rebounded modestly in Q2 as market participants sought windows of opportunity amid political turbulence. M&A activity also picked up after a global 12% decline in the first half of the year. For firm owners, these shifts signal renewed interest from strategic and financial buyers targeting volatility-resilient businesses with capital market exposure.
Employment and Wage Trends
Employment in investment banking and securities intermediation remained largely flat, with a 0.8% year-over-year change as of July. This lags the broader private sector’s 3.7% growth. Over the past decade, the industry’s employment has grown by just 7.3%, well below the 13.0% private sector average. Wages showed a similar pattern: average hourly earnings rose only 0.3% year-over-year to $51.76. Over the last three years, wages increased 6.9%, again trailing the 13.4% wage growth across private industries. These numbers suggest a maturing labor market, where firms rely more on productivity and tech investment than headcount expansion.
Industry Forecast
According to Vertical IQ, the US securities brokerages industry is projected to grow at a 6.58% compound annual rate from 2025 to 2029, outpacing overall economic growth. This positive outlook is powered by strong trading revenue, a resurgence in IPOs and M&A, and institutional interest in market-responsive advisory models. No Texas-specific updates were reported this quarter.
Outlook for Q3 2025
We’re currently in a balanced M&A market for investment advisory and securities firms. Strategic acquirers, private equity platforms, and newly capitalized independent advisors are actively pursuing acquisitions. Firms with consistent AUM growth, scalable client servicing models, and clean compliance histories are seeing premium valuations. Buyer appetite remains especially high for RIAs with fee-based revenue, succession-ready leadership, and infrastructure to support regulatory growth. The current environment favors prepared sellers who can demonstrate stability amid volatility.
With volatility comes opportunity, but also increased scrutiny from buyers. If you’re an advisory firm or broker-dealer owner considering an exit, now is the time to understand your value and start preparing.
Have a client who is considering selling? Have them take our free Sellability Score, and we will review the results together.
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