2022 could end up with second-most M&A deals on record

According to MarshBerry’s 2022 Q4 M&A update, insurance brokerage deals still fared well in a tough economy.

MarshBerry reports there were 708 announced 2022 M&A transactions in the United States as of January 3, 2023 – a decrease of 24.3% from the 924 deals in 2021. (Credit: metamorworks/Shutterstock.com)

Merger and acquisition (M&A) activity likely had its second-highest deal count on record in 2022, despite standing against a challenging economic backdrop, according to MarshBerry’s Q4 2022 Quarterly M&A Market Update. 2021 holds the record for the most announced deals, and also marked the fifth-straight year for highs in M&A deals and valuation multiples.

MarshBerry reports there were 708 announced 2022 M&A transactions in the United States as of January 3, 2023 – a decrease of 24.3% from the 924 deals in 2021. They predict that once all deals from 2022 are announced, the number will surpass the 712 announced transactions in 2020, which currently sits in the number-two spot for most deals.

“Through the year, as the debt markets tightened, there has been an equalization in the supply and demand in the insurance brokerage space,” the report states. “Sellers have enjoyed several years of premium valuations, as buyer demand outnumbered available sellers. But now, as debt becomes more expensive or even unavailable, some buyers have decided to sit on the sidelines, making the M&A field a bit more level. We still see demand to be outpacing supply, but not by as large of a margin as in prior years.”

Broken down by buyer type, 2022 M&A transactions announced so far were completed by:

According to the market update, the top ten most active buyers made up around 48.7% of transactions in 2022, while the top three (Acrisure, LLC, Hub International Limited and Peter C. Foy & Associates Insurance Services, LLC) comprised 19.8%. Specialty firm deals are expected to continue an upward trend, with these deals increasing by a compound average growth rate of 21.9% since 2018.

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