M&A Activity — Continuing to Slow
Published October 7, 2025 at 9:57 AM · Uncategorized
OPTIS Partners tracks mergers and acquisitions. The company notes the numbers dropped 8% in the first half of 2025 when compared to the first half of 2024. There were 319 of them compared to 2024’s figure of 345.
The second quarter saw the most activity with 168 deals. That’s up 11% over 2024’s second quarter.
OPTIS Partner’s partner, Steve Germundson put the numbers in even more perspective and noted the first half total is 16% down from the 5-year average. The peak period of that 5-year period is 2021 and 2022 where over 1,000 deals happened each of those years.
If the pace stays the same this year, you’re looking at a total 0f 758 deals.
“The M&A market is likely at a new normal. We expect about 750 to 800 deals annually going forward,” Germundson said. “Larger firms will continue to look for bigger transactions to fuel needed growth, and the number of buyers will shrink as some of yesterday’s active buyers become tomorrow’s sellers.”
OPTIS Partner’s managing partner, Timothy Cunningham said private equity backers accounted for 73% of the transactions in the first half of 2025.
“Private equity firms continue to invest,” Cunningham pointed out. “Since the start of the pandemic, they’ve done about 70% of the total number of deals in each quarter. They’ve got the money and are willing to spend it for the right acquisition.”
Here’s more from the report:
- Privately owned buyers did 142 deals in the last 12 months
- That’s about 19% for the first half of 2025
- The most active buyer is BroadStreet Partners with 90 deals
- Hub International had 62
- P&C sellers had 209 transactions or 65% of the total
- Benefits agencies accounted for 42 of them, or 13% of the total
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