UK Brokers Consider Management Buyouts as M&A Activity Slows
The UK insurance market is witnessing a significant shift as mergers and acquisitions (M&A) activity slows down. For brokers looking to maintain their independence and culture, this downturn presents a unique opportunity to explore management buyouts (MBOs). According to Marshberry, M&A deals involving UK insurance brokers have dropped by 26% year-over-year as of April 2025, from 47 deals in 2024 to 35 in 2025. This decline is attributed to increased caution among buyers and a scarcity of mid-sized acquisition targets.
Laura Hancock, managing director at Yutree, supports the view that MBOs can be a powerful alternative to traditional trade sales. “I think lots of brokers don’t even think that management buyouts are a route for them,” she stated. Hancock emphasizes the importance of understanding one’s motivation when considering an MBO: “What is your purpose? Where do you want to go? Because if you just want to be a broker and look after your clients, and you don’t care what banner you’re under, trade sale might be right for you.”
For Hancock, gaining control through an MBO was crucial for implementing positive changes in her business. Yutree underwent an MBO in April, enabling the company to secure its financial future and preserve its culture. “We’re making some massive changes, and they’ve all kind of been facilitated through the management buyout,” she explained.
The benefits of MBOs for brokers include greater autonomy, the ability to implement strategic changes quickly, preservation of business culture, and financial security. Hancock also highlighted the importance of modernizing operations and leveraging technology to improve efficiency. “I think the big issue for brokers is operational efficiencies…I think we need to turn our attention to harnessing what’s available with AI and technology to take away the low-level admin jobs and free up our brokers and underwriters to do what they do best.”
Planning for succession is another critical aspect of MBOs. Hancock stressed the need for brokers to identify potential future leaders early and establish a roadmap for leadership transition. “So you get to a point where someone wants to retire, or someone wants to leave, and that can really upend a business,” she warned.
Ultimately, Hancock believes that brokers have the ability to shape the profession’s future by differentiating themselves as trusted advisors. “I think it’s key to turn our attention to differentiating ourselves as an advice-driven profession… insurance brokers should be alongside solicitors and accountants… we’re not just selling a product.” By taking pride in their role and leveraging MBOs, brokers can forge a stronger future for themselves and their clients.
