Blog: How to pick the right acquirer in a crowded broker M&A market

Despite talk of a potential end on the horizon to consolidation in the insurance sector, Capital & Trust’s Jon Whiteley argues there is still activity with a shift of focus towards smaller transactions. And with many acquirers still to pick from, the options for sellers remain considerable, although a little daunting.

Selling an insurance broker, MGA or any other business for that matter is a complex process that requires careful planning, clear communication and a strategic approach.  

Whether the business owner is retiring, seeking new strategic opportunities, or just looking to liquidate their assets, the decision to sell a company can be both rewarding and challenging.  

While 2025 was the quietest year we’ve seen for insurance M&A since 2017, it still proved an active year for sales in the UK, with just under 100 deals completed.  

This sustained, high level of activity continues to underscore the confidence and interest in the sector. 

Although there has been some talk that this trend is starting to slow, with some suggesting this may be the beginning of the end of consolidation in the insurance sector, we believe the current conditions remain favourable for sellers, especially for businesses with solid performance and high client retention. 

Smaller enterprise values

This lively market has undergone a noticeable shift over the last year or two, focusing more heavily on smaller transactions, typically with enterprise values (EVs) under £5m.  

Smaller deals tend to close faster and involve fewer operational complexities, which is attractive to buyers seeking high-volume, cost-effective acquisitions.

Jon Whiteley

Smaller deals tend to close faster and involve fewer operational complexities, which is attractive to buyers seeking high-volume, cost-effective acquisitions rather than individual, high-value targets. 

This is also a calculated way to grow steadily without concentrating too much risk in any one transaction. With the additional factor of insurance brokerages continuing to be viewed as recession-resistant investments, valuation multiples remain strong.  

Preparing for a Sale

When a vendor starts to look at a potential sale of their business it can be a daunting task. As with anything in business, preparation is key to a smooth and (relatively) stress-free sale. 

The main areas that need addressing are:   

1. Getting financials in order – Acquirers will want to see clear, accurate financial records to assess the health and profitability of a company; getting everything in order early will aid in a quicker transaction. 

2. Addressing any potential ‘red flags’ – All acquirers want to buy a company that has minimal risks post sale, so any areas that need attention should be looked at closely before a sale process begins. Identifying and resolving legal, compliance or operational issues prior to a sale reduces the chance of problems later down the line. 

3. Preparing for due diligence – Buyers will want to verify the business financials, operations, compliance and legal standing. Having all documents, information and so on readily available avoids delays in the process. 

4. Engaging professional advice/help – Navigating the sale of a business is complex and can be very time-consuming. Having an M&A advisor can streamline the whole process, from identifying the correct acquirers to speak with to negotiating a better deal structure on the vendor’s behalf.    

Too much choice

The current UK insurance market has a large number of acquirers varying in size, from local brokers seeking to buy smaller portfolios/books of business, to national consolidators targeting larger companies.

With so many potential buyers in the UK, it can feel like there’s just too much choice, so having an M&A broker who understands how to approach this can be crucial in navigating the market. 

Identifying synergies between the vendor and acquirer is critical in ensuring the process is as streamlined as possible.  

An M&A advisor will facilitate in matching sellers with the right buyer by understanding the key objectives of the sale to ensure the best potential outcome for the vendor, their staff, and their clients. 

In this case, transparency, realistic valuations and careful management of both operational and personnel considerations reduce the likelihood of complications. 

Faster transactions

As outlined above, the UK insurance M&A market remains active, but the trend towards smaller, faster transactions is reshaping the way deals are executed.  

Brokers planning a sale must consider the choice of buyer, the complexity of their operations and the stability of client relationships.  

Those who prepare financial and operational information, address potential risks and understand current market trends are better positioned to achieve a sale that secures value and ensures continuity.  

Using an M&A advisor is a proven way to ensure the best acquirer/partner is found and that the process runs as smoothly as possible; not least because advisor-led transactions are more likely to run through to successful completion, achieve higher valuations and reduce costs by saving time.