Broker mergers and acquisitions (M&A) in the United States saw a significant uptick in the first quarter of 2025, with 127 announced transactions through March 31 — an 11.4% increase over the 114 deals recorded during the same period in 2024. The data, released in a recent report by MarshBerry Inc., offers a snapshot of the accelerating pace of consolidation in the insurance brokerage space.
Private Capital-Backed Buyers Dominate Market Share
Out of the 127 deals announced in Q1 2025, private capital-backed buyers were responsible for 86 transactions, representing 68% of the total deal volume. This segment continues to expand its footprint, building on a steady upward trend since 2019, when it comprised 59.3% of all transactions. Independent agencies followed, participating in 28 deals, or 22% of the market.
Top Buyers Account for Over Half of All Deals
Three firms — BroadStreet Partners Inc., King Insurance Partners, and Keystone Agency Partners LLC — were particularly active, collectively contributing to over a quarter (26%) of all broker M&A activity in the first quarter:
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BroadStreet Partners Inc. led with 16 deals, comprising 12.6% of the total.
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King Insurance Partners followed with nine deals (7.1%).
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Keystone Agency Partners LLC executed eight deals (6.3%).
Together, the top 10 buyers were responsible for 71 of the 127 total transactions, accounting for 55.9% of all first-quarter deals.
Valuations Remain Stable
Valuation metrics for these transactions held steady. The average multiple for Q1 2025 was reported at 15.17 times EBITDA (earnings before interest, taxes, depreciation, and amortization) — a marginal increase from 15.06 in Q4 2024. This consistency signals a stable valuation environment despite broader economic concerns.
Macroeconomic Concerns on the Horizon
While deal activity remains robust, macroeconomic uncertainties loom. Economic indicators reflect rising recession fears, with J.P. Morgan increasing its recession risk estimate to 60%, up from 40% earlier in the week and 30% at the start of the year. Similarly, Goldman Sachs elevated its 12-month recession probability to 45%, following a jump from 20% just a week earlier. Tariffs and other external pressures continue to contribute to this uncertainty.
Despite these concerns, MarshBerry noted that “the insurance industry continues to maintain optimism for a strong year.”
Broker Composite Index Reflects Industry Strength
Supporting that optimism, MarshBerry’s Broker Composite Index, which tracks the stock performance of six publicly traded brokerage firms, showed an 8.0% increase as of April 4, 2025. This positive performance further underscores the sector’s resilience and investor confidence heading into the remainder of the year.
For industry professionals and investors, Q1 2025 sets a tone of cautious optimism, highlighting both the accelerating pace of consolidation and the persistent strength of private capital, even amid economic uncertainty.
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