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Hosts Lynda Bennett and Eric Jesse build on their recent discussion with Lowenstein M&A Chair and Transactions & Advisory Group co-Chair Marita Makinen about the current state of play in the M&A and privateequity space.
In recent posts, we outlined the background of and reasons for the dramatic upsurge of privateequity investment in the insurance brokerage industry , how the combination of privateequity and low interest rates have dramatically raised valuations , and how privateequity sponsored agencies increasingly dominate the insurance agency business.
In 2019, we closed the largest number of transactions ever for our firm, reflecting the increasingly robust M&A market for insurance brokers driven mainly by privateequity sponsored brokerages. that specializes in the insurance brokerage space and related industries that compliment it.
Our recent blog posts have covered the privateequity boom in insurance brokerages , however, the reality is that the vast preponderance of insurance brokerages (probably over 95%) have revenues under $5 million annually. An insurance brokerage without its key people is like a melting ice cube – it slowly slips away.
For agency owners looking to sell their business in 2024, it’s helpful to know something about the insurance M&A buyer landscape before going in. The late 2010s, however, saw an explosion of privateequity activity that has dramatically increased that pool from 5 to more than 50.
Q1 2024 Agency and Broker Buyer Index Reveals a Dynamic Landscape for Insurance M&A NEW YORK, NY - May 13, 2024 - Sica | Fletcher releases the Q1 2024 Agency & Broker Buyer Index. The Sica | Fletcher Index is the leading report on mergers and acquisitions within the insurance brokerage sector. Learn more at SicaFletcher.com.
Our research team’s latest report compares the top insurance agency investment banks of 2024. Insurance Agency Investment Banks: Investment banks that specialize in the insurance industry. Insurance Agency Investment Banks: Investment banks that specialize in the insurance industry.
As the advisory firm that executes by far the largest number of mergers and acquisitions transactions for insurance agents and brokers, and with our deep experience and contacts within the privateequity community, we have a better vantage point on what is going on than most others. Or will the multiples decrease?
The 2024 insurance M&A market has changed substantially from just a few years ago, with potentially staggering implications for the future of insurance M&A transactions. Insurance M&A Transactions in 2024 The insurance M&A transactions we have observed thus far in 2024 indicate larger trends in the sector.
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. Selling an insurance agency book of business has a few advantages over selling the agency in total. Why Sell Just the Book?
Having advised on a record number of insurance agency M&A transactions, we have used our unusually large dataset in tandem with access to third-party M&A databases to provide up-to-date averages of EBITDA multiples for insurance brokerages in 2024. What Is Affecting Insurance Agency EBITDA Multiples?
M&A transactions for insurance companies are part of a robust but complicated market that requires ingesting a great deal of data in order to fully understand. While insurance M&A did see slight dips in deal volume and average value (Fig.2) While insurance M&A did see slight dips in deal volume and average value (Fig.2)
The insurance M&A market in 2024 is significantly more complex now than it was 20 years ago. However, this report seeks to make sense of these qualities as a whole to provide an overview of the 2024 insurance M&A market. for insurance agencies.
This article outlines how to sell an insurance agency by chronological steps, with a quick overview of the process in the table immediately following. We also include some key insights we’ve gathered over several decades of selling insurance agencies. This usually leads to equity-based payouts.
As one of the most active M&A firms in the insurance sector, we are frequently asked how insurance agency valuations work. This article discusses the fundamentals of insurance agency valuations, plus a few lesser-known factors that play into these processes before we give an overview of the insurance M&A market in 2024.
Over the past 20 years, there has been a significant shift in insurance brokerage M&A. More and more, we see privateequity (PE) backed brokers emerging as the dominant buyers in the space. About Sica | Fletcher Among the brokerage community, Sica | Fletcher is well known as the leading strategic advisory firm in the U.S.
Every year, numerous insurance agency and broker principals attempt to sell their companies by being " Serial Daters". About Sica | Fletcher Among the brokerage community, Sica | Fletcher is well known as the leading strategic advisory firm in the U.S. This is generally a very big mistake.
The Sica | Fletcher Index is the leading report on mergers and acquisitions within the insurance brokerage sector. The shift in buyer rotation year over year is contributing to the evolving dynamics of the insurance M&A landscape. billion in insurance agency and brokerage transactions since 2014.
The Sica | Fletcher Index is the leading report on mergers and acquisitions within the insurance brokerage sector. The shift in buyer rotation year over year is contributing to the evolving dynamics of the insurance M&A landscape. billion in insurance agency and brokerage transactions since 2014.
With 22 of the most active acquirers in the insurance brokerage space, the Sica | Fletcher Index indicates improvement over the previous quarter. The Sica | Fletcher Agency & Broker Buyer Index is the most comprehensive report on insurance brokerage M&A activity in existence.
An analysis of the most active acquirers in the insurance brokerage space reveals 13% higher average revenue values but lower transaction volume than 2022 as the year closed. The Sica | Fletcher Index stands as the leading report on mergers and acquisitions within the insurance brokerage sector. Learn more at SicaFletcher.com.
As the leading strategic advisor to the insurance brokerage industry, Sica | Fletcher advises on substantially more transactions than any other advisor in the industry. In our strategic advisory business on the buy-side and sell-side, we have advised on nearly 400 closed transactions over the past three years.
(Otherwise Known as “How Acquisitions Are Structured”) Our November blog post asked how a smaller agency can take advantage of the tsunami of privateequity investment in insurance brokerages. This is generally the same stock which is owned by senior management and the privateequity investor.
The issue with this is that the valuation of insurance brokers is invariably calculated as Pro Forma EBITDA multiplied by the EBITDA multiple. As of today, there are at least 30 privateequity sponsored brokers who are actively searching for acquisitions, plus other strategic players.
An analysis of the most active acquirers in the insurance brokerage space reveals higher average revenue values but lower transaction volume compared to 2022 as the market enters Q4. The Sica | Fletcher Broker Buyer Index stands as the leading report on mergers and acquisitions within the insurance brokerage sector.
Functions of Merchant Banks A merchant bank’s primary function is to provide financial and advisory services to medium-sized businesses. Morgan Stanley India: Global investment bank with a strong presence in India, offering services such as underwriting, M&A advisory, and equity research.
It is important to understand the different types of buyers that may be interested in the business, such as privateequity, family offices, strategic acquisitions, competitors, and strategic partners. For example, privateequity companies are looking for businesses that they can ultimately sell to a strategic buyer.
Exclusive Investment Opportunities Private banking clients gain access to investment products and opportunities not available to the general public, such as: Privateequity and hedge funds. Private bankers provide personalized financial services, such as asset management, estate planning, and tax advice.
As he started going for larger businesses, especially with the privateequity fund or with investor capital, he went after more established businesses. For example, they offer a start-to-finish plan that is targeted towards first-time buyers and provides comprehensive buy-side advisory services. or contract.
If you're interested in breaking into finance, check out our PrivateEquity Course and Investment Banking Course , which help thousands of candidates land top jobs every year. Reduced Paid-Up Insurance: Allows the policyholder to apply the cash value towards a fully paid-up policy with a reduced benefit.
Advisory Role The business sale process is extremely rewarding but equally excruciating. Equity purchase Here you sell the equity of your business. It could be a 100% equity purchase or a minority or even a majority equity purchase. 15.4.3 Do not feel uncomfortable to push back.
Below is his conversation with Ryan Seager, privateequity practice leader at Associated, a leading privately-held insurance and risk management firm that helps businesses and individuals assess and manage their insurance needs. By: Levenfeld Pearlstein, LLC
On this episode of Gain Traction , Mike Edge chats with Giorgio about market trends in the tire industry, how to prepare for an acquisition, and the role of privateequity in fueling business growth. Theres a lot of Capital gains and tax advisory that needs to go into it. And you guys can connect them to privateequity partners.
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