Jon Whiteley Q&A on insurance M&A
The insurance mergers and acquisitions market is still active, but buyers are becoming pickier. Sellers who can demonstrate strong fundamentals continue to attract significant interest, and owners thinking about a sale in the next few years should start preparing now, according to Capital & Trust’s Jon Whiteley.
Instead, buyers look for recurring income, strong client retention, specialist expertise, and clear growth potential.
Private equity-backed consolidators remain the main drivers of activity. Strategic acquirers, meanwhile, focus on purchases that strengthen their capabilities or open doors in niche markets.
“The insurance M&A market remains active, but buyers are becoming more selective,” Whiteley said. “Rather than pursuing scale for its own sake, they’re looking for businesses with recurring income, strong client retention, specialist expertise and clear growth potential.”
Sellers who can point to operational resilience and sustainable growth still command strong interest.
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Valuations are holding — and even rising
For well-run businesses, valuations are not just holding; they are increasing. Whiteley noted that buyers are doing more detailed due diligence than they did a few years ago, but that hasn’t dampened prices for the right targets.
“Strong valuations are typically achieved by firms with diversified income, robust compliance, loyal clients and a clear growth story,” he said. Where buyers find risks, they tend to adjust the deal structure through earn-outs or deferred consideration rather than cutting the headline valuation.
The sector’s resilient revenues and fragmented structure continue to attract investment.
Whiteley said one of the biggest challenges buyers face is underestimating how much preparation matters. Issues around compliance, client documentation, data quality, and operational processes often surface during due diligence.
“These issues can delay transactions or affect deal value,” he said. “The best way to minimise this is through early planning, ensuring financial, legal and regulatory information is organised before entering the market.”
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A well-prepared business inspires confidence, he added, and makes the entire transaction smoother. That’s where Capital & Trust has shifted its own focus — from simply sourcing deals to acting as a strategic partner well before a sale.
“Increasingly, preparation and strategic positioning are where we add the greatest value,” Whiteley said.
What’s next for insurance M&A
The outlook, he said, remains positive. Insurance continues to draw investment because of its resilient revenues and a fragmented market that offers ongoing consolidation opportunities.
In the coming years, buyers are expected to place even greater emphasis on technology, data, operational efficiency, and specialist expertise. Regulatory compliance will stay a key focus.
“Well-managed businesses with strong fundamentals should continue to command significant interest, making now a good time for owners to start preparing if they’re considering a sale over the next few years,” Whiteley said.
