Harbor View Advisors served as the exclusive financial advisor to Opteon in its recent acquisition of Equity Valuation Partners (EVP). Through this engagement, and our work with other clients in the MortgageTech and Services market (see chart), we gained firsthand insight into the dynamics shaping the AMC industry and today’s evolving M&A landscape. Below, we highlight the central themes and takeaways from this transaction.
The Appraisal Management Company (“AMC”) industry, a historically fragmented market, is at a fascinating inflection point for M&A. The sector has navigated extreme volatility, from the temporary procedural shifts during the COVID-19 pandemic to the unprecedented appraisal volumes of the 2021-2022 refinancing boom. This was followed by a sharp downturn as interest rates rose, leaving many potential sellers waiting on the sidelines.
Now, as the market stabilizes, a new wave of consolidation is building, driven by well-capitalized strategic buyers like Opteon, which recently acquired Equity Valuation Partners. These acquirers are leveraging their scale, technology and strong balance sheets to gain market share during the downturn, positioning themselves for the next cycle.
The key point of friction in AMC M&A is the valuation gap between buyers and sellers. Historically, sellers have sought multiples in the 8-9X EBITDA range, often anchored to peak earnings or high-water-mark transactions of the past. Buyers, however, remain cautious, typically targeting a more conservative 5-6X. This disconnect is a direct result of the industry's cyclicality; no owner wants to sell at trough earnings, and no acquirer will pay for a refi-boom earnings spike they believe is unsustainable. Successful transactions find a middle ground, often bridged with earn-out or make-whole incentives that reward sellers for future performance and de-risk the acquisition for buyers.
Looking ahead to 2026 and beyond, the outlook for AMC M&A appears increasingly active. Pent-up demand for deals is expected to be released as the broader mortgage and refi market recuperates and interest rate clarity emerges. More specifically, mortgage origination and refinance volumes are forecast to rise roughly 8% in 2026, with modest growth for the next few years, which should lift the entire appraisal ecosystem (see MBA forecast chart below). This anticipated market boost will narrow the valuation gap, giving sellers the confidence to transact and buyers the conviction to underwrite future growth. As the market thaws, expect a preferences for quality. Acquirers will prioritize targets with strong client scorecards, proven market share gains, and efficient operations.
For additional insight into the AMC M&A landscape or to discuss how we may be able to help, please contact John Mathis.
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DISCLAIMER This presentation is intended for information and discussion purposes only and does not constitute legal or professional investment advice. Statements of fact and opinions expressed are those of the participants individually and, unless expressly stated to the contrary, are not the opinion or position of Harbor View Advisors, LLC (“HVA”). The information in this presentation was compiled from sources believed to be reliable for informational purposes only. HVA does not endorse or approve, and assumes no responsibility for, the content, accuracy or completeness of the information presented.
