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# Gallagher CEO Says Broker M&A Is Slowing, And Its $300 Million Pipeline Is 'Off' From Past Years
- URL: https://www.bullished.co/gallagher-ceo-says-broker-m-and-a-is-slowing-and-its-300-million-pipeline-is-off-from-past-a055c94d/
- Published: 2026-10-29T22:55:55.000Z
- Updated: 2026-10-29T22:55:55.000Z
- Description: Pat Gallagher says sellers "don't have to sell" and multiples are down, even as the broker cites more than $12 billion of acquisition capacity.
- Author: Matteo Parrino
- Tags: Earnings, AJG, Industry: Financials

[Arthur J. Gallagher](https://www.bullished.co/tag/ajg/), the insurance brokerage, sees deal-making in its own industry cooling: Chairman and CEO J. Patrick Gallagher Jr. said on the company's third-quarter earnings call Thursday that broker M&A "is starting to slow down," and that its roughly [$300 million](https://finance.yahoo.com/markets/stocks/articles/arthur-j-gallagher-report-q3-160200697.html?ref=bullished.co) acquisition pipeline is probably below figures he has cited in past years.

## Sellers who don't have to sell

A TD Cowen analyst asked Gallagher to square the pipeline, which he put at over 30 term sheets signed or being prepared, with talk of a slowdown. He said the $300 million "is probably off with the numbers that we've told you in past years."

His reasons: owners are entrepreneurs who "don't have to sell," multiples are down, revenues are under pressure, and there is "not as much demand for those properties." He called it a typical lull.

If the tax law looks likely to change and aging owners decide to capitalize their assets, Gallagher said, "we'll be back into what we saw in 2006, 7, 8, 9, 10." He added that sellers should not expect a return to the 18-19 multiples overnight.

## Five deals in the quarter

In prepared remarks, Gallagher said the company closed five tuck-in acquisitions in the third quarter, adding about $100 million of estimated annualized revenue. That brings the year to 21 deals and about $225 million.

He also pointed to supply that remains untapped. Of the 300-plus acquisitions AssuredPartners completed, Gallagher had looked at 6%; it never got a call on the other 94%. He said there are still lots of opportunities and that Gallagher would have done those deals if it had been better at telling its story.

## $12 billion of firepower

CFO Douglas K. Howell said tax savings, cash on hand, expected free cash flow and future investment-grade borrowing give the company more than $12 billion of acquisition capacity over the next two years. The company still favors M&A, he said, while buying back shares opportunistically. It repurchased about 400,000 shares for roughly $100 million in the third quarter, and about $580 million through September 30.

Gallagher sells insurance brokerage, reinsurance brokerage, consulting and claims administration, and does not take underwriting risk itself. Gallagher said that a year ago the company spent $13 billion on AssuredPartners, adding 11,000 colleagues and $3 billion in revenue.

On the quarter, he said total revenue growth was 18%, organic growth 5%, and net earnings and adjusted EBITDA each grew 25%. He is confident in about 6% organic growth for 2026.

Howell said 2027 and 2028 are the test years for lifting AssuredPartners' organic growth to Gallagher's level, a gap he put at a point to a point and a half.

Learn

- [How To Read An Earnings Call Transcript: Start With Guidance, Then Find What's Missing →](https://www.bullished.co/learn/how-to-read-an-earnings-call/)  
How to read an earnings call transcript: check guidance first, look for dropped metrics, compare growth with last quarter, and watch hedged wording.

### Sources

- [Seeking Clues to Arthur J. Gallagher (AJG) Q3 Earnings? A Peek Into Wall Street Projections for Key Metrics](https://finance.yahoo.com/markets/stocks/articles/seeking-clues-arthur-j-gallagher-121502697.html?.tsrc=rss&ref=bullished.co) — Yahoo Finance
- [Arthur J. Gallagher: Q3 Earnings Snapshot | wusa9.com](https://www.wusa9.com/article/syndication/associatedpress/arthur-j-gallagher-q3-earnings-snapshot/616-a5000d93-3523-42e6-a09e-a67a08cb5db3?ref=bullished.co) — Associated Press
- [What to Expect From These 3 Insurance Brokers This Earnings Season?](https://au.finance.yahoo.com/news/expect-3-insurance-brokers-earnings-142700126.html?ref=bullished.co) — Yahoo Finance
- [Arthur J. Gallagher to Report Q3 Earnings Soon: What to Expect?](https://finance.yahoo.com/markets/stocks/articles/arthur-j-gallagher-report-q3-160200697.html?ref=bullished.co) — Yahoo Finance
- [Arthur J. Gallagher (AJG) Misses Q3 Earnings and Revenue Estimates](https://finance.yahoo.com/markets/stocks/articles/arthur-j-gallagher-ajg-misses-203502143.html?.tsrc=rss&ref=bullished.co) — Yahoo Finance

### More on Arthur J. Gallagher

- [Gallagher Third-Quarter Earnings Per Share Climb To $1.55 From $1.04 As AssuredPartners Rolls In](https://www.bullished.co/gallagher-third-quarter-earnings-per-share-climb-to-1-55-from-1-04-as-assuredpartners-64bb0810/)

[All Arthur J. Gallagher (AJG) coverage →](https://www.bullished.co/tag/ajg/)