Perella Weinberg Partners and Piper Sandler have ended discussions on a potential merger that would have combined two prominent independent investment banks on Wall Street. The talks, which centered on an all-stock transaction, stalled due to disagreements over critical financial terms and personnel arrangements, according to sources familiar with the matter.

The proposed deal aimed to address mounting challenges in the boutique advisory sector, including succession issues and intense competition from larger investment banks such as Goldman Sachs and Morgan Stanley. However, attempts to secure lock-up agreements to retain key Perella Weinberg bankers proved unsuccessful, leading to diminished confidence from Piper Sandler in the benefits of a merger.

Following reports of the collapsed talks, Perella Weinberg’s shares declined by 19 percent. The initial news of potential discussions had sparked a surge in its stock last month, underscoring market interest in consolidation among mid-sized advisory firms. Both Piper Sandler and Perella Weinberg declined to comment when contacted.

Perella Weinberg, established in 2006 by founders Joseph Perella and Peter Weinberg—whose family has longstanding ties to Goldman Sachs—has a market capitalization near $1.2 billion. The firm went public in 2021 through a merger with a blank-check company, shortly after divesting its asset-management division. Despite annual advisory revenues approaching $1 billion, Perella Weinberg remains smaller than publicly traded peers such as Evercore, Lazard, Moelis, and PJT Partners, as well as private advisory firm Centerview Partners. The company also maintains a substantial presence in London.

Piper Sandler itself emerged in 2020 from the acquisition of Sandler O’Neill by Piper Jaffray, a middle-market investment bank. Piper Sandler currently has an equity value close to $5 billion, although its share price has declined by about 25 percent this year.

The discussions to merge come amid a broader trend of consolidation within the boutique advisory space. Notable recent transactions include Greenhill’s acquisition by Japan’s Mizuho Financial Group and London-based Robey Warshaw’s integration into Evercore. The deal would have been one of the most significant combinations of independent advisory firms in recent years but ultimately failed to gain the necessary support within Perella Weinberg's leadership ranks.