M&A activity in the Banking, Finance, and Insurance sector maintained steady momentum in Q2 2025, with 765 closed transactions (LTM), up from 693 in Q2 2024. While deal volume remains below the highs of 2022, the market reflects stability amid ongoing economic and regulatory shifts. Strategic buyers dominated, accounting for 98% of transactions, while financial buyers showed selective interest in niche financial services. Valuations were relatively stable, with median TEV/EBITDA at 10.44x and TEV/Revenue at 1.39x, signaling cautious confidence and an emphasis on scale, technology integration, and cost efficiency.
Valuation pressures persisted in Q2 2025 as Banking, Finance, and Insurance buyers navigated elevated interest rates and regulatory headwinds. Revenue multiples edged up slightly to 1.39x, while EBITDA multiples held steady at 10.44x. Premium valuations were concentrated among targets with strong regional footprints, technology-enabled platforms, or essential roles in financial ecosystems, reflecting buyer focus on operational resilience and scalability.
Strategic Acquirers: Strategic buyers dominated the market, accounting for 98% of transactions (747 of 765). Activity focused on regional bank consolidations and acquisitions of insurance brokerages to expand geographic reach and service capabilities.
Financial Buyers: Financial buyers represented 2% of deal volume, selectively targeting niche financial services and fintech platforms. Private equity interest remained steady in scalable businesses with technology integration and recurring revenue models.
US banking and financial services M&A experienced a 19% increase in deal value in H1 2025, reaching $224 billion, with Q2 alone hitting $123 billion, the strongest quarter since Q3 2022. Deal volume, however, fell ~17% YoY, indicating fewer but larger transactions.1 2
Top U.S. States: California led with 68 transactions, followed by Texas (63) and Florida (40), underscoring the concentration of financial institutions and fintech hubs in these states.
Cross-Border Trends: U.S.-based targets remained the majority, though select inbound interest from international buyers points to ongoing global demand for U.S. banking and insurance assets.
| Target | Buyer | Value |
| American Heritage Life Insurance Company/American Heritage Service Company | Standard Insurance Company | $2.0B |
| Sandy Spring Bancorp, Inc. | Atlantic Union Bankshares Corporation | $1.6B |
| Bremer Financial Corporation | Old National Bancorp | $1.4B |
| Woodruff-Sawyer & Co., Inc. | Arthur J. Gallagher & Co. | $1.2B |
| Target | Buyer | Value |
| The First Bancshares, Inc. | Renasant Corporation | $1.2B |
| The First of Long Island Corporation | ConnectOne Bancorp, Inc. | $281M |
| Bank of Idaho Holding Company | Glacier Bancorp, Inc. | $237M |
| Evans Bancorp, Inc. | NBT Bancorp Inc. | $233M |
| Target | Buyer | Value |
| Family Life Insurance Company | JAB Holding Company S.à.r.l. | n/a |
| Solutions First Financial Group | Safeguard Investment Advisory Group, LLC | n/a |
Source S&P Capital IQ as of 7/6/2025 and PCE Proprietary Data
Opportunities: The demand for AI-augmented risk systems, ESG-integrated insurance solutions, and embedded finance platforms is expected to fuel deal activity.8
Risks: Wage inflation and evolving Basel III regulations could constrain bank M&A, especially for institutions with capital limitations.8
Predicted Activity: Insurance broker consolidation remains strong, driven by PE and strategic buyers with focus on scale and recurring revenue.8
David Jasmund |
Michael Poole |
Kyle Wishing |
|
Data Assumptions This report represents transaction activity as mergers & acquisitions, consolidations, restructurings and spin-offs. Targets are defined as U.S. Based companies with either foreign or U.S. based buyers. Transaction information provided is based on closed dates only. Glossary EBIT - Earnings Before Interest and Taxes Sources:
|