Industry Trends
Largest Transactions Closed
- Target
- Buyer
- Value($mm)
Advised Western Milling in their sale to the Western Milling ESOP Trust
Executive Summary
M&A activity in the Banking, Finance, and Insurance sector showed resilience in Q3 2025, with 689 closed transactions (LTM), down slightly from 724 in Q3 2024. Despite a modest volume dip, the market demonstrates stability amid regulatory scrutiny and economic uncertainties. Strategic buyers led overwhelmingly, comprising 97.5% of deals, as financial acquirers targeted select opportunities in scalable platforms. Valuations adjusted, with median TEV/EBITDA at 9.95x from 10.84x and TEV/Revenue steady at 1.39x versus 1.38x, indicating cautious optimism with emphasis on consolidation, technological upgrades, and operational synergies.1
Market Dynamics
In Q3 2025, Banking, Finance, and Insurance M&A faced ongoing regulatory and geopolitical pressures, contributing to a slight volume decline. Revenue multiples held firm at 1.39x, while EBITDA multiples eased to 9.95x. Higher valuations favored targets with robust regional presence, insurtech innovations, or critical financial infrastructure roles, underscoring buyer priorities for risk mitigation and growth potential.1
Buyer Landscape
Strategic Acquirers: Strategic buyers commanded the sector, representing 97.5% of transactions (669 of 689). Efforts centered on insurance brokerage roll-ups and regional bank mergers to bolster market positions and service diversification.1
Financial Buyers: Financial buyers accounted for 2.5% of deal volume, cautiously investing in niche advisory and investment platforms. Private equity focused on assets offering recurring revenues and technological edge.1
Industry Comparison
In Q3 2025, global M&A deal values surged 40% year-over-year to $1.26 trillion, marking the second-best Q3 on record, while volumes fell 16% to 8,912, the worst in 20 years. The US accounted for 53% of global value with $666 billion, up 45%. Banking and insurance subsectors demonstrated resilience through larger transactions, contrasting with broader market caution amid economic ambiguities.2
Geographic Expansion
Top U.S. States: Texas led with 57 transactions, followed by California (56) and New York (40), highlighting key financial centers and innovation hubs driving activity.1
Cross-Border Trends: While primarily domestic, inbound interest from global players persisted, reflecting international appeal for U.S. insurance and banking assets amid diversification efforts.1
Notable Transactions
Largest Transactions Closed
| Target | Buyer | Value |
| AssuredPartners, Inc. | Arthur J. Gallagher & Co. | $13,450.00 |
| RSC Topco, Inc. | Brown & Brown, Inc. | $9,825.00 |
| Pacific Premier Bancorp, Inc. | Columbia Banking System, Inc. | $2,073.00 |
| Direct General Life Insurance Company/NSM Sales Corporation/Association Benefits Solution, LLC | Nationwide Life Insurance Company | $1,250.00 |
| Brookline Bancorp, Inc. | Berkshire Hills Bancorp, Inc. | $1,141.00 |
| Enterprise Corp, Inc. | Independent Bank Corp. | $563.00 |
| Ambac Assurance Corporation | American Acorn Corporation | $420.00 |
| Southern States Bancshares, Inc. | FB Financial Corporation | $381.00 |
| HomeStreet, Inc. | Mechanics Bancorp | $300.00 |
| Penns Woods Bancorp, Inc. | Northwest Bancshares, Inc. | $270.00 |
Other Financial Buyer Transactions Closed
| Target | Buyer | Value |
| Employee Benefit Solutions Holdings, LLC | Stone Point Capital LLC | n/a |
| BroadStreet Partners Group, LLC | White Mountains Insurance Group, Ltd.; British Columbia Investment Management Corporation; Ethos Capital, LP; T.Rowe Price Investment Management, Inc. | n/a |
Other Strategic Buyer Transactions Closed
| Target | Buyer | Value |
| Distinguished Programs Group LLC | White Mountains Insurance Group, Ltd. | $224.00 |
| ESSA Bancorp, Inc. | CNB Financial Corporation | $210.00 |
| Old Point Financial Corporation | TowneBank | $205.00 |
| Bancorp Financial, Inc. | Old Second Bancorp, Inc. | $110.00 |
| Heartland Bancshares, Inc. | Seacoast Banking Corporation of Florida | $106.00 |
Source S&P Capital IQ as of 10/2/2025 and PCE Proprietary Data
Emerging Trends
Key trends shaping Financial Services Firms & Banks:
- Private Credit Expansion
Financial institutions ramped up private credit acquisitions to diversify lending and fund M&A, enabling faster transactions amid traditional bank caution.3 - Insurtech & Digital Integration and Capital Markets
Insurers targeted tech startups for claims automation and customer platforms, accelerating digital shifts for efficiency. Private equity and public markets continue to drive insurance broker consolidation.4 - Regulatory-Driven Consolidations
Heightened scrutiny spurred regional bank mergers to achieve scale and compliance.5 - Subsector Spotlight: Regional & Community Banks
Regulatory clarity and tech demands made smaller banks prime targets, with larger entities seeking synergies and expanded footprints.3 - Subsector Spotlight: Payments & Wealth
PE-backed consolidations focused on building platforms with recurring revenues and specialized expertise.4
Outlook for Next Quarter
Opportunities: Following the first rate cut in September 2025, easing rates and tech advancements in AI/ESG will likely boost investments in embedded finance and cyber risk solutions, fueling activity.3
Risks: Tariff uncertainties and geopolitical tensions may strain margins and slow cross-border deals, especially in trade-exposed areas.2
Predicted Activity: Insurance consolidations and PE exits via carve-outs will dominate, with focus on scalable fintech integrations.5
PCE Transactions
Contact Us
David Jasmund |
Michael Poole |
Kyle Wishing |
