Sica Fletcher

MAY 13, 2024

Private Equity-backed buyers retain their stronghold on M&A activity with 87% of Q1 2024 Index transactions, even as the interest rate environment and strategic acquisitions continue to slow down a handful of platforms. “The The shift in buyer rotation year-over-year continues to shape the dynamic insurance M&A landscape.

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Sica Fletcher

AUGUST 6, 2024

To begin, we need to start with a few definitions: Investment Banks: We use the colloquial meaning of “investment banks,” which often includes M&A advisory firms and other financial services firms that facilitate the growth and sale of insurance agencies around a possible sale.

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Cooley M&A

NOVEMBER 20, 2023

Compensation matters, including retention packages, equity treatment and related disclosure, are always key negotiating points in M&A transactions. Typically, M&A transactions involve converting target equity awards into buyer equity awards and granting new hire and retention awards to incoming employees.

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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.

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M&A Insurance Debt Equities 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. Generally, these fall into two distinct categories of advisory firms or investment banks. M&A Advisory Firms For the vast majority of insurance agency sellers, you will likely work with an M&A advisory firm.

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Sica Fletcher

FEBRUARY 6, 2024

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 2023. According to S&P Global, Sica | Fletcher ranked as the #1 advisor to the insurance industry for 2017-2023 in terms of total deals advised.

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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.

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The TRADE

NOVEMBER 6, 2023

Eleanor Beasley, chief operating officer for EMEA equity execution services, Goldman Sachs Chief operating officer of EMEA equity execution services, Eleanor Beasley, joined Goldman Sachs to manage its new-look market structure team in 2019. He is also responsible for Liquidnet’s equity product strategy.

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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.

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M&A Insurance Mergers and Acquisitions 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.

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Insurance M&A Private Equity Advisory 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. Learn more at SicaFletcher.com.

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Sica Fletcher

JULY 23, 2024

On average, brokerages that represent themselves take home 30% less than those represented by an experienced M&A advisory firm. On average, modern deal structures typically consist of about 75% equity, with only 25% in actual cash. Talk To An Advisor We acknowledge our bias on this one, but the research doesn’t lie.

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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. . ### About Sica | Fletcher: Sica | Fletcher is a strategic and financial advisory firm focused exclusively on the insurance industry.

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Broker M&A Insurance Mergers and Acquisitions 40

Sica Fletcher

MARCH 8, 2024

There are now significantly more buyers in the market as more PE firms have become bigger players in insurance M&A, and the range of valuations and deal structures has also changed appreciably, with buyers relying more on equity in transactions than in years past.

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Insurance M&A S&P Valuation 52

Sica Fletcher

JUNE 11, 2024

Whereas 2022 saw equity making up nearly 17.5% As long as buyers face higher interest rates, sellers should expect a prolonged deal process contending with complex capital structures and equity-based negotiations. the freedom of brokers to work with a variety of carriers, and c.) The use of stock nearly doubled since last year’s data.

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Peak Frameworks

SEPTEMBER 12, 2023

While they're seen in numerous sectors, their significance shines particularly in investment banking , private equity, and corporate finance. In modern times, their usage has expanded, notably in sectors like investment banking and private equity , adapting to the dynamic needs of the financial industry. Why Retainer Fees?

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Growth Business

MARCH 1, 2024

By Dom Walbanke on Growth Business - Your gateway to entrepreneurial success Raising private equity funds is seen as the holy grail for businesses who want to grow quickly, simply because the strength of capital opens the door for rapid growth.

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Sica Fletcher

MAY 8, 2024

And it certainly does not stop less-than-reputable advisory firms from agreeing to represent you and taking their regular retainer fees, despite knowing full well your agency can’t be sold. A Growth in Owner Equity. Therefore, records of increasing equity over time can be a strong selling point. Indicators of Scalability.

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Insurance M&A Valuation Advisory 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.

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M&A Insurance Valuation Equities 52

Sica Fletcher

SEPTEMBER 12, 2024

Inter-family loans, unpaid salaries, or shared equity structures may complicate future sales. monthly, quarterly, or annual payments) Family agency sellers typically prefer these models because both 1.) allow for an overall larger payment over time and 2.) enable sellers to retain equity in the agency post-closing.

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Insurance Valuation M&A S&P 52

Sica Fletcher

DECEMBER 12, 2019

(Otherwise Known as “How Acquisitions Are Structured”) Our November blog post asked how a smaller agency can take advantage of the tsunami of private equity investment in insurance brokerages. Barring extenuating circumstances, 100% of the “value” of the equity is usually paid at the closing of the transaction.

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Sica Fletcher

MAY 15, 2024

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. Learn more at SicaFletcher.com. Contact: Mike Fletcher Managing Partner, Sica | Fletcher mjf@sicafletcher.com

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Insurance S&P M&A Valuation 52

Sica Fletcher

APRIL 30, 2024

That amount is trickier, often subject to negotiation and various deal structures consisting of cash vs. equity and post-closing consulting/employment agreements. About Sica | Fletcher: Sica | Fletcher is a strategic and financial advisory firm focused exclusively on the insurance industry. Contact us to discuss a future partnership.

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Insurance Valuation M&A S&P 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?

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Tyton Partners

JUNE 20, 2023

The organization, which launched out of the MacArthur Foundation, has deployed its methodology across a range of issues, from racial and gender equity, to democracy, to economic opportunity. Since launching its first 100&Change competition in 2017, Lever for Change has already galvanized over $1B in philanthropy for bold solutions.

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Software Equity Group

APRIL 4, 2023

After hitting $12M in ARR, our founders decided to consider equity recapitalization to drive next-level growth. With extremely strong financial metrics, an excellent Rule of 40 ratio , and solid EBITDA , SEG agreed we were on the right track and guided us wisely through a process culminating in the transaction to Waud Capital in 2017.

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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. About Sica | Fletcher: Sica | Fletcher is a strategic and financial advisory firm focused exclusively on the insurance industry.

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Insurance Business Valuation M&A 52

Sica Fletcher

MARCH 26, 2024

This usually leads to equity-based payouts. private equity firms, investment banks, individual investors). The advisory team targets a single high-profile buyer on whom they focus their marketing efforts. The owner wants to maximize the transaction’s payout. A Quick Turnaround. Account-Based.

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InvestmentBank.com

MAY 6, 2021

In 2017, market players increasingly turned to the utilization of blockchain to create such efficiencies. Investment banks that position themselves to provide advisory services designed to meet the industry’s need for consolidation and innovation are sure to do well. SEC, UPS 10k, [link] (last visited Nov 9, 2017).

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