Sica Fletcher

AUGUST 30, 2023

The quarterly report emphasizes the ever-growing presence of private equity-backed firms in insurance brokerage M&A. About 91% of SF Index transactions were executed by private equity-backed firms through YTD June 2023, continuing the trend observed year over year. Learn more at , SicaFletcher.com.

M&A 52

M&A Insurance Broker Private Equity 52

OfficeHours

JULY 18, 2023

I started my career in 2014 as an investment banking analyst in an oil & gas coverage group. In June of 2014, when I finished training and first hit the desk, the price of oil was $105 per barrel (West Texas Intermediate, or WTI). investment banking, private equity , VC, etc.) and how our process works.

Investment Banking Analyst 130

Investment Banking Analyst Funds Recruitment Investment Banking 130

Sica Fletcher

JUNE 11, 2024

Whereas 2022 saw equity making up nearly 17.5% Last year's data saw PE firms acting as buyers in ~90% of all transactions. As long as buyers face higher interest rates, sellers should expect a prolonged deal process contending with complex capital structures and equity-based negotiations. as of H1 2024.

Broker 52

Broker Insurance Valuation S&P 52

Sica Fletcher

JULY 11, 2024

However, the brokerage's tech stack now handles many of these job functions, which significantly improves the bottom line and increases profitability. Pay attention to how the equity a buyer offers is actually valued. Equity used to consist of senior debt (i.e., Streamlined Operations.

M&A 52

M&A Insurance Debt Equities 52

Sica Fletcher

AUGUST 6, 2024

Founded in 2014, they have consistently ranked at the top of the S&P Global Data's rankings for investment banks, totaling an average of 100 deals per year. Their size also provides a hidden value for prospective clients in that it ensures that the firm's principals touch on every deal that they handle.

Investment Banking 52

Investment Banking Insurance Banking Bank 52

Sica Fletcher

MARCH 8, 2024

EBITDA Multiples for Insurance Agencies, 2018-2024 (Projected) M&A Deal Volume for Insurance Agencies, 2018-2024 (Projected) *S&P Global Data taken from ,,, “Insurance Brokers and Servicers Sector View 2024” The most important news this data offers is that insurance M&A is not actually in the tailspin that many “experts” claim it to be.

Insurance 52

Insurance M&A S&P Valuation 52

Sica Fletcher

APRIL 30, 2024

Selecting the Valuation Method Insurance agency valuations typically occur in one of the following four methodologies EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization): A calculation of an insurance agency's profitability calculated by subtracting taxes and operating expenses from its overall revenue.

Insurance 52

Insurance Valuation M&A S&P 52

Sica Fletcher

MAY 29, 2024

Stock Will Take Up a Larger Percentage of Payout Structures While 20 years ago, transaction payouts were typically 100% cash, more often than not, modern payouts now almost universally contain some amount of equity in the buyer company as a central part of the deal.

M&A 52

M&A Insurance Equities S&P 52

Sica Fletcher

JULY 31, 2024

With such a high level of competition, they face the double-edged sword of higher overall valuations vs. a relatively smaller initial payout as equity becomes an increasingly larger percentage of buyer offers. Although sellers are in a good position to sell, they need to be wary of the equity that’s being offered.

M&A 52

M&A Insurance Debt Equities 52

Sica Fletcher

JULY 2, 2024

The late 2010s, however, saw an explosion of private equity activity that has dramatically increased that pool from 5 to more than 50. Financial: Often referred to as private equity, these buyers are interested in purchasing an insurance agency for the express purpose of making it more profitable and then reselling it further down the road.

Insurance 52

Insurance M&A Private Equity Advisory 52

Sica Fletcher

JULY 23, 2024

Consult data sources like S&P Global data to get an idea of a firm’s activity within the industry. On average, modern deal structures typically consist of about 75% equity, with only 25% in actual cash. This means that they often lack the specialized industry knowledge to effectively negotiate your deal.

M&A 52

M&A Insurance S&P Valuation 52

Sica Fletcher

MAY 15, 2024

In addition, third-party M&A institutions like S&P Global Data or Statista can provide more generalized data. That number is often complicated by what percentage of your payout is cash vs. equity, the timeline in which it is paid out, and additional considerations like post-closing employment agreements or milestone earnouts.

Insurance 52

Insurance M&A S&P Valuation 52

Sica Fletcher

NOVEMBER 9, 2023

Private Equity-backed firms have dominated the space consistently for several years in terms of the number of transactions and represent over 89% of SF Index transactions during YTD September 2023. Broadstreet leads the group in number of deals at 45, followed by Hub International at 42 and Assured Partners at 34.

Broker 40

Broker M&A Insurance Mergers and Acquisitions 40

InvestmentBank.com

MAY 26, 2021

As the world headed into the uncharted territory of a worldwide pandemic, investors in both debt and equity markets reacted to shifts and changing conditions in several interesting ways, and the lessons they learned and the actions they take this year will set the stage for everyone’s access to capital in the years to come.

Capital Raising 52

Capital Raising Capital Debt Private Equity 52

Sica Fletcher

MARCH 28, 2024

H2 2024 Will See Increased Deal Volume & Value If Interest Rates Lower Insurance M&A Buyers Are Looking For New Things In 2024 Equity will play a larger role in deals H2 2024 Will See Increased Deal Volume & Value If Interest Rates Lower 2023 is widely regarded as one of the worst years for M&A in recent memory.

M&A 52

M&A Insurance Mergers and Acquisitions Equities 52

Sica Fletcher

SEPTEMBER 12, 2024

Changes in the Valuation Process Valuation is the first formal step in the M&A deal process, taking place once the seller has gathered all their preliminary documents and made any necessary changes to the company's internal structure to make it more profitable. Family-specific financial arrangements. Think Long-Term.

Insurance 52

Insurance Valuation M&A S&P 52

Sica Fletcher

JUNE 20, 2024

The History of Private Equity in Insurance One of the primary forces differentiating the insurance M&A market in 2024 from those of decades past is the presence and dominance of private equity (PE) firms in the buyer space. We’ve seen this number jump even in the last two years, with the percentage of equity almost doubling.

M&A 52

M&A Insurance Valuation Equities 52

Sica Fletcher

OCTOBER 23, 2024

This trend emerges in stark contrast to most other industries in M&A, where equity has increased YoY over the last decade. Founders Michael Fletcher and Al Sica are two of the industry's leading dealmakers who have advised on over $16 billion in insurance agency and brokerage transactions since 2014.

Valuation 52

Valuation M&A Insurance Advisory 52

Sica Fletcher

APRIL 11, 2024

In these situations, it’s common to see deals with low cash payouts and a higher degree of equity. The most commonly used source for this is S&P Global data, which ranks the performance of M&A advisory firms across a variety of different metrics and industries. (

Insurance 52

Insurance Advisory M&A Investment Banking 52

The TRADE

MAY 1, 2024

It’s about risk management philosophy and methodology,” explains Papanichola. There’s us sitting in the middle of the room trading once a day maybe sometimes once a week but taking very big positions and actively providing information for the room as well.” I could literally trade any product if I wanted to.

Trading 59

Trading Capital Funds Investment 59

Sica Fletcher

MAY 8, 2024

A Growth in Owner Equity. Therefore, records of increasing equity over time can be a strong selling point. seller's discretionary earnings, discounted cash flow), they are so rarely used in insurance M&A that we do not include them here. Indicators of Scalability. Should I Sell My Insurance Agency?” Let’s Talk.

Insurance 52

Insurance M&A Valuation Advisory 52

Sica Fletcher

MARCH 26, 2024

This usually leads to equity-based payouts. private equity firms, investment banks, individual investors). For example, a private equity firm LOI might state that it plans to roll up your agency with others and resell them all several years later. The owner wants to maximize the transaction’s payout. A Quick Turnaround.

M&A 52

M&A Insurance Valuation Advisory 52

Sica Fletcher

SEPTEMBER 3, 2024

Common Insurance Agency Book of Business Payment Structures Insurance agency M&A transactions are typically going to happen through a financial buyer, which is almost always a private equity company. Financing options offered by the seller, based on the book's performance over time. Much rarer in BoB sales. Retention Bonus.

Insurance 52

Insurance Business Valuation M&A 52

Sica Fletcher

MARCH 12, 2024

For the most part, the market consists of many small to midsize agencies that make prime candidates for roll-up deals, especially as private equity firms have played an increasingly larger role in the market over the last decade. There are surprisingly few large insurance brokerages. So, what should insurance agencies expect in 2024?

Valuation 52

Valuation Insurance M&A Profitability 52

Mergers and Inquisitions

AUGUST 14, 2024

But as of 2024, Big Tech is essentially driving the entire S&P 500 and has had incredible revenue growth over the past ~15 years (Google grew over 10x, and Facebook grew by over 100x). Big Tech is doing this to avoid heightened antitrust scrutiny, but this practice potentially hurts both VCs and normal employees.

Investment 59

Investment Business Consulting Mergers and Acquisitions 59

The TRADE

OCTOBER 24, 2024

While adoption is widespread in equities other asset classes such as fixed income have been slower to adopt these systems given the nuances of the workflows and liquidity landscapes in these markets. They’re typically used in equities given that this asset class trades on exchange unlike fixed income and some foreign exchange assets.

Trading 120

Trading Investors IT S&P 120

Mergers and Inquisitions

JANUARY 8, 2025

Being in your country’s top ~5% of earners will make a FAR bigger difference than fancy strategies, day trading, or finding the occasional meme coin that goes up by 100x. Investing Principles: Why a High Income Trumps Everything Else Between 2009 and 2014, I did not have a traditional portfolio via a brokerage firm.

Investment 59

Investment Portfolio S&P Trading 59