Determining the right time to buy or sell a managing general agency (MGA) is a matter of great debate, particularly in the current economic climate.
On one hand, merger and acquisition (M&A) activity remains robust, with 627 agency deals occurring in the first three quarters of 2022, according to OPTIS Partners, an investment banking and consulting firm. In fact, deal volume in Q3 2022 was the second-highest recorded total for the period and 8% higher than the prior five-year average.
On the other hand, choppy waters lie ahead. When looking at deals exclusively involving property and casualty, M&A activity declined 14% year-over-year from Q3 2021 to Q3 2022. OPTIS Partners predicts a return to a normal deal environment by year's end, which means M&A volume won't match 2021's record-breaking numbers.
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