Sica Fletcher

APRIL 2, 2024

Insurance M&A Deal Valuation, 2024 Starting out in 2024, EBITDA and revenue multiples are in a good place, experiencing modest YoY growth despite the economic downturn of the last 18 months. In deals with the highest earnout, business owners turn to a specialized M&A advisory firm to handle negotiations and oversee valuations.

Insurance 52

Insurance M&A S&P Broker 52

Sica Fletcher

MARCH 8, 2024

Starting in H2 2022, the insurance M&A market has seen a notably difficult 18-month period, afflicted with high interest rates, lowered deal volumes, and lowered valuations. If they do, then we can expect to see valuations and, by extent, EBITDA multiples for insurance agencies rise. Learn more at , ,, SicaFletcher.com.

Insurance 52

Insurance M&A S&P Valuation 52

Sica Fletcher

MAY 15, 2024

essentially boils down to three major steps: Determine your insurance agency’s EBITDA Determine the standard valuation multiple for an agency of your size Multiply your EBITDA by the multiple to determine your expected payout (i.e.,

Insurance 52

Insurance S&P M&A Valuation 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

JULY 23, 2024

Consult data sources like S&P Global data to get an idea of a firm’s activity within the industry. This is because company B had a higher initial valuation of the brokerage as well as an official valuation of the equity in their company. Are you meeting the firm’s principals? Still Uncertain?

Insurance 52

Insurance M&A S&P Valuation 52

Sica Fletcher

MAY 8, 2024

While we’ve already written extensively on the process of insurance agency valuation , the following sections focus on what to look for in the earliest stages of considering a sale - in other words, what deciding factors to look for to determine whether you should sell your agency. What Documents Do I Need? hidden behind a paywall or b.)

Insurance 52

Insurance M&A Valuation Advisory 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. This has led to very high valuation multiples (~11.5x When selecting an advisor, consider the following: Reputation.

M&A 52

M&A Insurance Debt Equities 52

Sica Fletcher

APRIL 11, 2024

Your agency valuation will play a large role in influencing how buyers perceive your agency’s worth. Take time before bringing your agency to market to optimize your daily operations, thus increasing the likelihood of a higher valuation. Pay close attention to the multiple being offered.

Insurance 52

Insurance Advisory M&A Investment Banking 52

Sica Fletcher

JUNE 20, 2024

PE firms rely on leveraged buyouts (LBOs) for the lion's share of their deals, which often involve using the acquired company’s assets as collateral to insure the loan used to purchase it. Conversely, when interest rates are high, valuations are supposed to decrease because buyers will try to make up what they are losing to interest.

M&A 52

M&A Insurance Valuation Equities 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. 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.

M&A 52

M&A Insurance Debt Equities 52

Sica Fletcher

MAY 29, 2024

2) our team noted unexpected increases in the valuation multiples offered for insurance agencies, as depicted below. 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.

M&A 52

M&A Insurance Equities S&P 52

Sica Fletcher

JULY 1, 2024

Although the seller’s goal does impact how each M&A transaction is conducted, it does not affect whether or not they need to improve their brokerage prior to the initial valuation. According to S&P Global, Sica | Fletcher ranked as the #1 advisor to the insurance industry for 2017-2023 YTD in terms of total deals advised on.

Insurance 52

Insurance M&A Advisory Funds 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). By December of that year, prices had fallen to $59 per barrel.

Investment Banking Analyst 130

Investment Banking Analyst Funds Recruitment Investment Banking 130

Mergers and Inquisitions

AUGUST 14, 2024

Again, these are all perfectly viable and profitable businesses, but they don’t have the same margin or valuation profile as true SaaS companies. 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).

Investment 59

Investment Business Consulting Mergers and Acquisitions 59

InvestmentBank.com

OCTOBER 24, 2019

Christopher Majdi, Director of Valuation & FMV Services at Premier, Inc. Careful considerations must be given to: (1) regulatory limitations; (2) practice valuation; (3) physician compensation; and (4) culture integration to insure a successful transaction. Is Healthcare’s M&A Trend Softening? 2014, March 25).

Hospitality 40

Hospitality Private Equity Acquisitions Equities 40

InvestmentBank.com

MAY 26, 2021

According to Pitchbook, deal volume contracted by 26% compared to Q1 2019 and featured the lowest volume since Q2 2014 [4]. COVID-19’s impact on M&A activity varied across industries, with some reaping the benefits and others not being so lucky. 2020, January) COVID 19’s Influence on the US PE Market. 2020, March 25).

Capital Raising 52

Capital Raising Capital Debt Private Equity 52

Sica Fletcher

SEPTEMBER 3, 2024

The following article details the process of selling an insurance agency book of business in 2024, including deviations from the process of selling an agency, the valuation process, and common payout structures. This means getting a formal valuation done - typically through your M&A advisor, but sometimes through a third party.

Insurance 52

Insurance Business Valuation M&A 52

Sica Fletcher

MARCH 26, 2024

Valuation For a more in-depth examination of the valuation process, consult our previous article on the subject here. Once an agency owner completes their initial preparations, the next step is to complete a full valuation of the agency. Valuation is a process in and of itself. Learn more at , ,, SicaFletcher.com.

M&A 52

M&A Insurance Valuation Advisory 52

InvestmentBank.com

MAY 18, 2021

Government funded programs include Medicare, Medicaid, Children’s Health Insurance Program, and the Veterans Health Administration. Over the last year, the biotech industry has seen considerable growth compared to the S&P 500. How do business valuations differ in Healthcare and across its subsectors?

Healthcare 40

Healthcare M&A Valuation Hospitality 40