Broker M&A deals down 10% through Q3: Optis

There were 535 announced broker mergers and acquisitions through the first three quarters of 2024 among American and Canadian buyers, down 10% from 594 in the same period in 2023, according to a report released Wednesday by Otis Partners LLC.

Deal activity is also 11% below the previous five-year average, the report said.

There were 198 deals announced in the third quarter, up 14% from 173 in the second quarter and 21% from 164 in the first.

Private equity-backed/hybrid buyers accounted for 73% of all acquisitions for the quarter, while private parties accounted for 17% and publicly held brokers and all others accounted for just 10% of deals, according to report data.

BroadStreet Partners Inc. was the most active acquirer with 68, followed by Hub International Ltd. with 39 and Inszone Insurance Services with 38, the report said.

More than half of all deals, 292, or 55% of the total, were done by the 10 most active acquirers, all private-equity-backed firms other than privately held Leavitt Group and publicly traded Arthur J. Gallagher & Co.

While deal volume is still off from its peak, it is still above pre-2021 levels, according to Optis managing partner Timothy J. Cunningham.