📊SEC Publishes Data on Broker-Dealers, Mergers & Acquisitions, and Business Development Companies

Acclara AI•June 26, 2025

The SEC's Division of Economic and Risk Analysis (DERA) released new reports on broker-dealers, M&A activity, and BDCs, shedding light on market trends and industry shifts.

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Key Points

•📉 Broker-Dealer Decline: Number of broker-dealers dropped by 30% from 2010 to 2024, but assets grew by $1.7 trillion.
•📊 M&A Insights: Average deal value is $3.5 billion, with median at $0.5 billion. Acquirers' average assets are $40 billion.
•🔍 Industry Consolidation: Fewer broker-dealers control a larger asset pool, indicating a trend towards consolidation.
•📈 Cyclical M&A Market: M&A activity is higher during favorable market conditions, showing clear cyclicality.
•📂 BDC Data: DERA provides detailed financial and non-financial data sets from BDC disclosures.

📉 Broker-Dealer Activity

The SEC's report on broker-dealer activity reveals significant changes over the years. From 2010 to 2024, the number of broker-dealers decreased by a staggering 30%, but their total assets surged by $1.7 trillion. This indicates a clear trend towards industry consolidation, with fewer players controlling a larger portion of the market. As of 2024, there are approximately 3,340 broker-dealers with total assets around $6.4 trillion.

📊 Mergers & Acquisitions Analysis

DERA's analysis of M&A activity highlights the cyclical nature of the market. Typically, years with favorable market performance see higher deal volumes. The average deal value stands at $3.5 billion, while the median is about $0.5 billion. Acquirers are generally much larger than their targets, with average assets of $40 billion compared to the targets' $5 billion. Interestingly, nearly 75% of the deals involve companies within the same industry and about a third involve entities from the same state.

📂 Business Development Companies Data

The BDC Data Sets offer a treasure trove of information extracted from BDC disclosures filed with the SEC. These data sets include detailed financial data, a schedule of investments report, and a summary of non-financial data. This allows the public to perform their own analysis and gain insights into the operations and financial status of BDCs.

🔍 Why This Matters

Understanding the current status and trends in broker-dealer activities, M&A, and BDCs is crucial for investors, policymakers, and market participants. As markets evolve, having access to comprehensive data helps in making informed decisions, identifying potential risks, and seizing opportunities.