Market conditions propelled 2005 agency and brokerage mergers and acquisitions to their second-highest volume since 2000, and indications are that another boom year could be coming. The M&A world saw new and emerging players as well as niche market growth, but there also was evidence of pressure on both sides of the buying and selling equation.

To better understand today's marketplace and prospects for near-term consolidation, it is important to have a clear view of 2005 M&A activity. After examining last year's statistics, I'll explore consolidation trends while also looking at recent entrants and the appetite of other buyers.

Based on recent activity, agency owners might have good reason to consider a sale. With 216 announced transactions, consolidation in 2005 was just slightly under the record 2004 level of 224 deals.