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. The table of contents below offers quick links for readers seeking specific information in later sections.

M&A 52

M&A Insurance Valuation Equities 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

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 11, 2024

Equity Is the Name of the Game Using equity in place of cash payouts has become the M&A standard across all industries over the last 10 years, now comprising approximately 90% of the payouts in modern insurance M&A deal structures. Pay attention to how the equity a buyer offers is actually valued.

M&A 52

M&A Insurance Debt Equities 52

Sica Fletcher

JULY 23, 2024

Read the Offer Closely Our experience with insurance M&A transactions has taught us two central lessons that we take into every deal: Not all equity is the same “Multiple of what” is more important than the multiple itself First, it’s important to understand that equity will inevitably be a part of your deal. Still Uncertain?

Insurance 52

Insurance M&A S&P Valuation 52

Sica Fletcher

MAY 29, 2024

2) our team noted unexpected increases in the valuation multiples offered for insurance agencies, as depicted below. In only the last two years, we’ve seen the percentage of equity in insurance M&A transactions double, indicating a strong growth trajectory for equity to play increasingly larger roles in future deals.

M&A 52

M&A Insurance Equities S&P 52

The Deal

JUNE 22, 2023

That valuation is not far off, though might be viewed as slightly high depending on the metrics used, one of sources familiar with the matter told The Deal. Industry trade publication Waste Dive first reported the transaction. Macquarie later confirmed it had picked up a majority stake in the business. Boca Raton, Fla.-based

Asset Management 52

Asset Management Capital Equities Management 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.

Hospitality 40

Hospitality Private Equity Acquisitions Equities 40

Focus Investment Banking

MARCH 28, 2024

Summary Private equity’s investments in ophthalmology are entering a new, more mature lifecycle phase. We also expect many platform recapitalizations once private equity groups and lenders become comfortable with the interest rate environment. They are looking for the ideal partner with the best valuation and terms possible.

Private Equity 52

Private Equity Equities Valuation Acquisitions 52

Shearman & Sterling

DECEMBER 19, 2017

On December 14, 2017, the Delaware Supreme Court, in an opinion by Justice Karen L. per share significantly undervalued the stock of Dell. . ("Dell") by its CEO and founder, Michael Dell, and affiliates of a private equity firm, Silver Lake Partners ("Silver Lake"), at $13.75 In re Appraisal of Dell Inc.,

Discounted Cash Flow 52

Discounted Cash Flow DCF Private Equity Shares 52

Shearman & Sterling

AUGUST 15, 2017

On August 1, 2017, the Delaware Supreme Court, in an opinion by Chief Justice Leo E. reversed and remanded an appraisal ruling that had determined the buyout of DFC Global Corporation ("DFC") by private equity investor Lone Star at $9.50 Strine, Jr., per share significantly undervalued the stock of DFC. DFC Global Corp.

Discounted Cash Flow 52

Discounted Cash Flow Private Equity Shares Debt 52

Peak Frameworks

JUNE 7, 2023

For example, Amazon's net income in 2017 was a small fraction of its operational cash flow due to significant non-cash expenses. Cash Flow from Operations in Valuation Models Valuation models such as the Discounted Cash Flow (DCF) model use CFO as a key input.

Financial Analysis 52

Financial Analysis Discounted Cash Flow DCF Finance 52

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.

M&A 52

M&A Equities Shares Advisory 52

Shearman & Sterling

DECEMBER 19, 2017

On December 14, 2017, the Delaware Supreme Court, in an opinion by Justice Karen L. per share significantly undervalued the stock of Dell. . ("Dell") by its CEO and founder, Michael Dell, and affiliates of a private equity firm, Silver Lake Partners ("Silver Lake"), at $13.75 In re Appraisal of Dell Inc.,

Discounted Cash Flow 40

Discounted Cash Flow DCF Private Equity Shares 40

Shearman & Sterling

AUGUST 15, 2017

On August 1, 2017, the Delaware Supreme Court, in an opinion by Chief Justice Leo E. reversed and remanded an appraisal ruling that had determined the buyout of DFC Global Corporation ("DFC") by private equity investor Lone Star at $9.50 Strine, Jr., per share significantly undervalued the stock of DFC. DFC Global Corp.

Discounted Cash Flow 40

Discounted Cash Flow Private Equity Shares Debt 40

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 S&P M&A 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. A Growth in Owner Equity. What Documents Do I Need?

Insurance 52

Insurance M&A Valuation Advisory 52

Sica Fletcher

JULY 1, 2020

Update on Private Equity and Insurance Brokerages In our ,, previous article , we reported that the COVID-19 pandemic had not diminished the pace of mergers and acquisitions transactions we are seeing in the insurance agency and brokerage sector. The number of transactions we are working on has not abated. Dry powder reached $1.4

Private Equity 52

Private Equity Insurance Debt Equities 52

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.

Private Equity 59

Private Equity Equities Investment Business 59

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.

Private Equity 52

Private Equity Insurance Equities Management 52

The Deal

AUGUST 9, 2023

Founded in 2017, the Palo Alto, Calif., billion valuation in 2021. Wadhwani created private equity firm Symphony Technology Group LLC in 2002 and is SymphonyAI’s sole backer, having invested $1 billion to build out the company. Our focus at SymphonyAI is all around enterprises.” AI), which is not profitable, has a $4.4

M&A 40

M&A Private Equity Retail Financial Services 40

Peak Frameworks

SEPTEMBER 12, 2023

Historical Background Milestones One of the significant milestones of the WTO in the last decade includes the Trade Facilitation Agreement in 2017 , which aimed to simplify customs procedures, making trade cheaper and faster. Such disputes can significantly impact the valuation and financial planning of the companies involved.

Trading 52

Trading Corporate Finance Private Equity Finance 52

Sica Fletcher

AUGUST 6, 2024

MidCap Advisors Stats Dowling & Partners Securities Dowling & Partners Securities specializes in equity research and broker-dealer services, providing investment banking services for insurance agencies as part of their capital markets department. Learn more at SicaFletcher.com.

Investment Banking 52

Investment Banking Insurance Banking Bank 52

Mergers and Inquisitions

JANUARY 31, 2024

In-depth analysis that might take days or weeks, such as a financial model with 1,000 rows in Excel to assess a biopharma company’s valuation. Tiger Global is another example of this issue: It started as a hedge fund but later expanded into private equity and venture capital , with different teams for each one.

Funds 59

Funds Management S&P Recruitment 59

Sica Fletcher

APRIL 11, 2024

In these situations, it’s common to see deals with low cash payouts and a higher degree of equity. 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.

Insurance 52

Insurance Advisory M&A Investment Banking 52

Wall Street Mojo

JANUARY 17, 2024

In contrast, the financing activities involve all transactions that affect the equity and liabilities of a company. read more and balance sheet Balance Sheet A balance sheet is one of the financial statements of a company that presents the shareholders' equity, liabilities, and assets of the company at a specific point in time.

Accountant 98

Accountant Finance Finance Profitability 98

Growth Business

MAY 31, 2023

By Dom Walbanke on Growth Business - Your gateway to entrepreneurial success According to research from Beauhurst , the first quarter of 2022 was the top performing equity investment quarter on record, with £7.28bn invested into UK start-ups. Investors typically invest between £250,000 and £2m in equity funding in tech start-ups.

Investment 71

Investment Investors Funds Business 71

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

Cooley M&A

MAY 5, 2020

In 2017, the Company began experiencing financial difficulty as it worked to update its flagship product, and in early 2018 it formed a special committee of its three independent directors to consider options for additional ways to raise capital. 2017 WL 1201108, at *13 (Del. 31, 2017). [5] Curry , 2017 WL 1076725, at *3 (Del.

Negotiation 40

Negotiation Mergers and Acquisitions Utilities IT 40

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.

Sale 52

Sale Book-building Business M&A 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

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 36 – Motorway Value: $1bn Founded: 2017 What do they do? What is unicorn status?

Insurance 52

Insurance Banking Bank IT 52

Sica Fletcher

MARCH 26, 2024

This usually leads to equity-based payouts. private equity firms, investment banks, individual investors). Valuation For a more in-depth examination of the valuation process, consult our previous article on the subject here. Valuation is a process in and of itself. A Quick Turnaround.

M&A 52

M&A Insurance Valuation Advisory 52

The TRADE

APRIL 30, 2024

Among the key components of Basel III is the increase in minimum capital requirements for banks, including higher common equity and Tier 1 capital ratios. It mandates increased pre- and post-trade transparency for a wide range of asset classes, including equities, fixed income, derivatives, and structured finance products.

Financial Institution 67

Financial Institution Financial Market Risk Management Banking 67

Cooley M&A

JULY 9, 2021

In a string of seminal decisions from 2017 through 2019 ( DFC Global , Dell and Aruba ), the Delaware Supreme Court re-shaped appraisal jurisprudence, in each case by overturning the Court of Chancery for failing to give adequate weight to deal price as the most reliable indicator of fair value. took private in 2017 for $315/share.

Mergers and Acquisitions 52

Mergers and Acquisitions Sale Shares Entertainment 52

Cooley M&A

FEBRUARY 15, 2017

We expect this trend to continue, with mid-market and smaller deals driving the deal count in 2017. Dealmakers appear much more optimistic in the first quarter of 2017 than at this same time last year, in part because of greater optimism about the IPO market and the potential for favorable corporate tax and other regulatory changes.

M&A 40

M&A IPO Pharmaceutical Valuation 40