A stark difference in M&A trends emerged for specialty firms in 2024, with the total volume of transactions decreasing significantly. This was not a result of buyers losing interest in the space, in fact, buyer demand for specialty firms remains very robust. However, we did see this demand significantly outpace seller supply last year, helping drive valuations to new all-time highs.
To The Point: A MarshBerry Video Series
2024 M&A Marketplace Update: Specialty Distribution Firms
March 26, 2025
Video Transcription
Hello, my name is Peter Kampf, Vice President of MarshBerry and I am excited to tell you a bit about what we saw in 2024 in the M&A marketplace for specialty insurance distribution firms.
Just so we’re all on the same page here, when I say specialty distribution firms, I’m referring to wholesale brokers, MGAs, MGUs, and program administrators, essentially any firm that typically sits between a financial advisor or retail broker and the ultimate insurance carrier.
For these firms in 2024, MarshBerry was proud to remain the number one sell side advisor despite operating in a changing marketplace. Specifically, in 2024, we saw a new trend with a stark decrease in M&A transaction values for specialty firms. Coming off an all-time high in 2023 with 181 publicly announced transactions, we saw about a 33% decline in 2024, down to 120 total announced transactions. That said, don’t take this trend at face value. This is not a result of buyers starting to lose interest in the space. In fact, buyer demand for specialty insurance firms remains very robust. However, we did see this demand significantly outpace seller supply this last year. On the bright side, some of this scarcity in seller supply did help drive new all-time high valuations for specialty firms with 2024 valuations on average being up over 35% higher than valuations just a few years ago in 2020.
If you’d like to learn more about these trends or hear about how MarshBerry could be a resource to you or your firm, we do encourage you to reach out. Until then, thank you for your time.
MarshBerry is a global leader in investment banking and consulting services, specializing in the insurance brokerage and wealth management sectors. If your firm seeks expert advisory guidance to refine your business strategies, drive sustainable growth, or facilitate a sale, MarshBerry is the ideal partner to support you in making these critical business decisions. Collaborating with a trusted advisor who deeply understands your business and the industry can help you maximize value at every stage of ownership.
