Q&A: Jon Whiteley, director, insurance M&A at Capital & Trust

Well-managed businesses continue to command significant interest. And owners should start preparing if they’re considering a sale over the next few years, according to Capital & Trust’s Jon Whiteley.

What are you seeing in terms of the current M&A trends in the insurance space presently?

The insurance M&A market remains active, but buyers are becoming more selective. Rather than pursuing scale for its own sake, they’re looking for businesses with recurring income, strong client retention, specialist expertise and clear growth potential.

Private equity-backed consolidators continue to drive activity, while strategic acquirers are focused on acquisitions that strengthen capabilities or expand into niche markets. Sellers who can demonstrate operational resilience and sustainable growth continue to attract strong interest.

In terms of valuations, are they holding?

Yes, for quality businesses they are and if anything, they are increasing. While buyers are carrying out more detailed due diligence than they did a few years ago, there is still significant capital available for well-run insurance businesses.

Strong valuations are typically achieved by firms with diversified income, robust compliance, loyal clients and a clear growth story.

Where risks are identified, buyers are more likely to adjust the deal structure through earn-outs or deferred consideration than reduce the headline valuation significantly.

What potential issues are buyers often most unaware of when entering an M&A process, and how can they be addressed?

One of the biggest challenges is underestimating the importance of preparation. Buyers often discover issues during due diligence around compliance, client documentation, data quality or operational processes that could have been addressed in advance.

These issues can delay transactions or affect deal value. The best way to minimise this is through early planning, ensuring financial, legal and regulatory information is organised before entering the market.

A well-prepared business inspires confidence and makes the transaction significantly smoother.

In terms of Capital & Trust, how is your offering evolving to meet the needs of insurance M&A?

Our role has evolved from simply sourcing transactions to becoming a strategic partner throughout the process.

We work with clients well before they decide to sell, helping them understand value, prepare the business, identify the right buyers and manage a competitive process. By combining sector expertise with strong buyer relationships, we’re focused on achieving the best long-term outcome, not just completing a deal.

Increasingly, preparation and strategic positioning are where we add the greatest value.

What does the future hold for insurance M&A?

The outlook remains positive. Insurance continues to attract investment because of its resilient revenues and fragmented market, creating ongoing opportunities for consolidation.

We expect buyers to place even greater emphasis on technology, data, operational efficiency and specialist expertise, while regulatory compliance will remain a key focus.

Well-managed businesses with strong fundamentals should continue to command significant interest, making now a good time for owners to start preparing if they’re considering a sale over the next few years.

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