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.

Broker 52

Broker Insurance Mergers and Acquisitions S&P 52

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

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

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

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 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

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

Mergers and Inquisitions

JANUARY 31, 2024

They might have separate teams for specific strategies or markets, but everything is run under a single Profit & Loss statement (P&L). There are very few real “requirements” besides the single PM / single P&L one above and the standard Limited Partner / General Partner structure that all hedge funds use.

Funds 59

Funds Management S&P Recruitment 59

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.

Insurance 52

Insurance M&A S&P Valuation 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.

M&A 52

M&A Insurance Equities S&P 52

InvestmentBank.com

OCTOBER 24, 2019

For the better part of the last decade, physician practices have seen a wave of consolidation by hospitals and private equity with 2018 being no exception [1]. In fact, acquisitions by hospitals and private equity in provider services broke records last year according to Bain & Co’s 2019 global healthcare report. 2019, May 2).

Hospitality 40

Hospitality Private Equity Acquisitions Equities 40

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

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 S&P M&A Valuation 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

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

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

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

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. ( Learn more at SicaFletcher.com.

Insurance 52

Insurance Advisory M&A Investment Banking 52

Francine Way

JULY 12, 2017

Calculate cost of debt, cost of equity, and weighted average cost of capital (WACC). Determine the year-by-year future non-equity claims from the latest 10-K, especially those that will occur during the forecast horizon, and their combined present value. Derive Free Cash Flow to Firm (FCFF).

Discounted Cash Flow 130

Discounted Cash Flow Valuation M&A DCF 130

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

Peak Frameworks

AUGUST 15, 2023

The Seven Indicators Stock Price Momentum : The S&P 500 versus its 125-day moving average. Conversely, during the bull market of 2017, the index hovered in the extreme greed range. The index uses seven market indicators to calculate a value ranging from 0 (Extreme Fear) to 100 (Extreme Greed). For instance, the 2018 U.S.

Investors 52

Investors Stock Risk Management Investment 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

Francine Way

JULY 8, 2017

Many of these causes have their equivalences to the reasons behind the sale of a company (also known as a divestiture): Liquidity: As the equity holding period matured, investors (private equity funds behind companies) will look to sell. the house failed to increase in expected value), mature market (i.e. divorce, etc.).

M&A 130

M&A Acquisitions Sale Investment 130

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 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