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Innovative Financing Strategies for M&A Deals Amid Economic Uncertainty

Sun Acquisitions

Economic uncertainty can cast a shadow of doubt over potential deals in the realm of mergers and acquisitions (M&A). In this article, we’ll explore some creative financing strategies that can help facilitate M&A transactions even in uncertain economic times.

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COVID-19 and Credit: Debt Market Volatility and Insurance Brokerage M&A

Sica Fletcher

What is generally less understood is the impact of the pandemic on the debt markets. Many PE-backed Insurance Brokers Secured Sizable Loans Immediately Prior to the Crisis Over the past several years, the demand for high yield debt issued by private equity (PE) backed insurance brokers has been extremely strong.

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Matching Financial Strategies to Business Acquisition Goals

Sun Acquisitions

In such cases, evaluating the financial health of target companies and understanding their debt structures is crucial. While it provides capital without the burden of debt repayment, it dilutes ownership and may involve relinquishing some control. Debt Financing: Debt financing involves borrowing money to fund your acquisition.

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Lots to Learn from Brown & Brown Insurance's Q1 Earnings Call

Sica Fletcher

For owners and executives of private insurance brokers, Brown & Brown's first quarter earnings call provides a treasure trove of information. insurance brokers. The typical PE-backed broker is levered at 6.0x That is, for every $1 of EBITDA they have $6 of debt. billion of debt given the 6.0x

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Where Do We Stand Now as Things Start to Open Up?

Sica Fletcher

First, these brokers each have growth strategies whose success is measured by the expansion of revenues and EBITDA. Furthermore, as we have reported in previous blogs, these agencies already had their equity and debt capital lined up before the full force of the pandemic hit. There are two principal reasons.

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COVID-19 and the Insurance Brokerage M&A Market

Sica Fletcher

The Largest Strategic Players Tell Us Full Steam Ahead – The major strategic acquirors have informed us that they plan to continue to aggressively pursue acquisitions of insurance brokers. These strategic acquirors typically have both their equity and debt facilities in place, so there is no shortage of capital.

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Treasury Bills: Definition, How it Works, Benefits

Peak Frameworks

A classic example of T-Bills in action occurred during the European Sovereign Debt Crisis. Investors, wary of the uncertainties in European debt markets, turned to U.S. Debt Ceiling Crisis , T-Bills experienced an unusual yield spike as investors momentarily questioned U.S. Represented by the full faith and credit of the U.S.

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