Sica Fletcher

APRIL 30, 2024

This article presents a step-by-step guide on how to value an insurance agency - both in the sense of how a valuation agency/M&A advisor goes about valuation, and also in terms of what insurance agency owners can do to maximize their valuation prior to running an M&A deal.

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Insurance Valuation M&A S&P 52

Sica Fletcher

OCTOBER 23, 2024

Who Performs A Valuation? RIA valuations are typically performed by one of three parties: The M&A Advisor A Third-Party Specialist The Seller Themselves Although many sellers attempt to perform their own valuations, we strongly recommend against this.

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Valuation M&A Insurance Advisory 52

Sica Fletcher

SEPTEMBER 17, 2024

When insurance agency sellers have already met with prospective buyers, they may have been offered a valuation based on their “adjusted EBITDA.” The following article provides a brief overview of EBITDA and adjusted EBITDA valuations for insurance agencies. What Is EBITDA? What Is Adjusted EBITDA?

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Insurance Valuation Profitability M&A 52

Sica Fletcher

JUNE 14, 2024

M&A professionals prefer it over other valuation methods for this reason, because it provides buyers with a clearer picture of how much the agency is worth to them. While valuation multiples – especially for private companies – have been a hidden source of information for decades, it has become more transparent in the last few years.

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Insurance Valuation M&A S&P 52

Shearman & Sterling

NOVEMBER 14, 2016

per share, rather than the merger price ($83 per share) at which the bank was actually acquired in October of 2014 by NexTier, Inc., . ("F&M"), awarding a "fair value" of $91.90 another community bank in western Pennsylvania. Dunmire et al. Farmers & Merchants Bancorp of Western Pennsylvania, Inc., 10589-CB (Del.

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Mergers Bank Banking Valuation 40

Sun Acquisitions

MARCH 1, 2024

Established in 1984 and under current ownership since 2014, they have been a cornerstone in the commercial furniture market. We work with clients that are interested in the confidential sale, acquisition, or valuation of privately held middle market and main street companies. They serve clientele nationwide from its headquarters in IL.

Food 59

Food Mergers and Acquisitions Acquisitions Middle Market 59

Sica Fletcher

FEBRUARY 8, 2024

As true partners, we provide clients with data-driven market valuations that make finding and executing the right deal as smooth and hassle-free as possible, which leads to the best results in the market.” The firm was founded in 2014 by Michael Fletcher and Al Sica, two of the industry's leading dealmakers who have advised on over $17.5

M&A 40

M&A S&P Insurance Advisory 40

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.

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M&A Insurance Valuation Advisory 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

SEPTEMBER 25, 2019

In recent posts, we outlined the background of and reasons for the dramatic upsurge of private equity investment in the insurance brokerage industry , how the combination of private equity and low interest rates have dramatically raised valuations , and how private equity sponsored agencies increasingly dominate the insurance agency business.

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Private Equity Equities Insurance Capital 52

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.

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M&A Insurance S&P Broker 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.

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Investment Banking Analyst Funds Recruitment Investment Banking 130

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

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.

Insurance 52

Insurance Valuation M&A S&P 52

Sica Fletcher

DECEMBER 12, 2019

Let’s break down how this is paid: Valuation The valuation is invariably calculated as Pro Forma EBITDA multiplied by the EBITDA multiple. Barring extenuating circumstances, 100% of the “value” of the equity is usually paid at the closing of the transaction. Note that there are two variables used, and each is as important as the other.

Private Equity 52

Private Equity Insurance Equities Management 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., Learn more at SicaFletcher.com.

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

JUNE 20, 2024

Conversely, when interest rates are high, valuations are supposed to decrease because buyers will try to make up what they are losing to interest. Ultimately, this paved the way for PE firms to take an increasingly larger share of the insurance M&A market starting about a decade ago. for insurance agencies. for insurance agencies.

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M&A Insurance Valuation Equities 52

InvestmentBank.com

DECEMBER 1, 2020

M&A Beat – US Health Services Q2 2020 M&A Beat is a quarterly update for CEO’s, CFO’s, Owner, Founders of lower middle-market ($10M-$100M Rev) companies, offering relevant details on mergers and acquisitions deal value, volume, valuation multiples and trends in their respective industry and vertical. acquisition. to reach 14.6x

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M&A Investment Banking Investment Bank 52

Transactional Delights

JANUARY 24, 2021

Disclaimers: [link] In what seems to be a trend of shareholders contesting go-privates based on concerns over valuation ( Vista – Pluralsight , Alta Fox / Pembroke / etc. Rowe has declared publicly that it will not tender its shares for the CKH – American Industrial Partners tie up [1]. Here’s a brief summary of what has happened to date.

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Investors IT Shares Valuation 40

Wall Street Mojo

JANUARY 17, 2024

Financial Modeling & Valuation Courses Bundle (25+ Hours Video Series) –>> If you want to learn Financial Modeling & Valuation professionally , then do check this ​ Financial Modeling & Valuation Course Bundle ​ ( 25+ hours of video tutorials with step by step McDonald’s Financial Model ).

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Accountant Finance Finance Profitability 98

Sica Fletcher

MARCH 10, 2020

The issue with this is that the valuation of insurance brokers is invariably calculated as Pro Forma EBITDA multiplied by the EBITDA multiple. It takes both variables to come up with an adequate valuation, and you need professional assistance to calculate the Pro Forma EBITDA properly.

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Private Equity Insurance Business Equities 52

Growth Business

AUGUST 22, 2023

This valuation is either achieved through an equity financing round or via financial performance indicators. In August 2021, ZEPZ raised $292m in a funding round which saw its valuation increase to $5bn. #7 9 – Lendable Value: £3.5bn reported Founded: 2014 What do they do? 1.75bn Founded: 2014 What do they do?

Insurance 52

Insurance Bank Banking Funds 52

Sica Fletcher

JULY 23, 2024

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. Be Patient Primarily because of the extended conversion of valuation and equity above, the M&A deal process has become significantly longer. Still Uncertain?

M&A 52

M&A Insurance S&P Valuation 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 Learn more at SicaFletcher.com.

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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. Learn more at SicaFletcher.com.

Insurance 52

Insurance Advisory M&A Investment Banking 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. Learn more at SicaFletcher.com.

M&A 52

M&A Insurance Equities S&P 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. The Top Insurance Agency Investment Banks of 2024 Sica | Fletcher Sica | Fletcher is a boutique investment bank specializing in M&A advisory services.

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Investment Banking Insurance Bank Banking 52

Growth Business

MAY 31, 2023

The network has invested in 43 healthcare and life sciences start-ups since its inception in 2014, investing a total of £14m. The network is part of MedCity, a not-for-profit organisation set up by the Mayor of London in 2014 to encourage growth and investment in the sector. Successful founders typically attract £70,000 to £350,000.

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Investment Investors Funds Business 71

Sica Fletcher

JULY 11, 2024

In contrast, the equity buyers offer for your brokerage should be independently valued according to one of a few methods: Equity Valuation Methods Expect A Longer Deal Duration An M&A transaction used to take between 6-12 months, whereas the current average timeframe has expanded to between 9-18 months.

M&A 52

M&A Insurance Debt Equities 52

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. 2014, March 25). 2014, September 12). 2014, August 1).

Hospitality 40

Hospitality Private Equity Equities Acquisitions 40

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. Consider Your Policy Mix Although improving the value of your brokerage is fundamentally the same as it is with any other business (i.e.,

Insurance 52

Insurance M&A Advisory Funds 52

Peak Frameworks

SEPTEMBER 12, 2023

For instance, the Bali Package in 2014 aimed at streamlining trade, allowing developing countries more options for food security, and providing better trade opportunities for the least developed countries. Such disputes can significantly impact the valuation and financial planning of the companies involved.

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Trading Corporate Finance Private Equity Finance 52

Growth Business

NOVEMBER 23, 2023

Despite investment in the first half of 2023 dropping to £4.6bn from 2022’s £10.8bn as a result of rising interest rates, high inflation, a decrease in valuations and geopolitical tensions globally, UK fintechs are still attracting more VC investment than all other EMEA fintechs combined, with a significant percentage coming from US investors.

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Investment Funds Capital Investors 95

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. Success stories such as Palantir and Red Hat exist, but they are more like exceptions that prove the rule. vs. how much money it makes.

Investment 59

Investment Business Consulting Mergers and Acquisitions 59

Tyton Partners

NOVEMBER 28, 2023

In 2014-2015, we decided to take our impact to the next level. Their growth – getting new investors and earning higher valuations, expanding their footprint and stakeholders – gives us valuable confirmation that our approach is working. At the portfolio level, for instance, our companies have impacted over 6.7 million women.

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Capital Funds Investment Portfolio 59

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]. As more buyers compete in the marketplace, valuations will increase, and thereby benefit sellers, exiting PE firms, and companies in need of capital as they reassess their strategies going forward.

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Capital Raising Capital Debt Private Equity 52