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The following report examines the health and outlook for insurance M&A deals in 2024. We base this research on several key findings in our proprietary SF database, which observes and records data from the top ~400 insurance M&A buyers. Agency vs. Company: Which Is The Better Insurance M&A Deal?
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?
What is going on in these markets could potentially have significant implications for insurance brokerage M&A, and we want you to understand why. While we can’t predict the future, our certainty level regarding the impacts on insurance brokerage M&A has increased over the past several weeks. billion at yields between 5.1%
After all, we are still faced with the COVID pandemic, now in an economic environment with the highest inflation we have experienced since the 1980s, and likely increases in interest rates. Will we see transaction multiples at last year’s levels? Or will the multiples decrease?
The following report contains our observations of insurance M&A trends in 2024. However, volume and value in the insurance sector remained remarkably stable. As insurance M&A enters into the 2020s, however, buyers are looking at several additional factors that speak to an agency’s more intangible qualities.
Many of our clients have asked us about the impact on insurance brokerage M&A of the pandemic and the resultant containment efforts. 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 insurancebrokers.
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. The table of contents below offers quick links for readers seeking specific information in later sections.
For owners and executives of private insurancebrokers, Brown & Brown's first quarter earnings call provides a treasure trove of information. insurancebrokers. Powell Brown, President and CEO of Brown and Brown Insurance commented: “The first quarter was an interesting one until early March. We saw the U.S.
What the Data Is Telling Us In our last few posts, we reported on what we perceived to be the trends in insurance agency and brokerage M&A in light of the pandemic and analyzed the reasons for these trends. In summary, we observed that: The most active acquirers continue to be highly interested in acquisitions.
Always stay connected and able to understand the markets and the economic, geopolitical, and technical factors to anticipate. However, I believe that some professions are at risk of disappearing, such as broker roles in high touch – but we have been saying that for years, and yet they are still here. So only the future will tell.
Insurance Agency & Brokerage M&A Update Many of our clients have been asking us “now that the first phase of the coronavirus pandemic seems to be ending, where do things stand with insurance brokerage M&A?” First, these brokers each have growth strategies whose success is measured by the expansion of revenues and EBITDA.
Enterprise Insurance Policies. Selling a business requires the seller to work with a team of experienced M&A professionals including an M&A accountant, an M&A attorney, an M&A business broker just to mention a few. appeared first on Sun Acquisitions | Chicago Business Broker and M&A Firm. Letter of Intent.
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. However, insurance brokerages remain relatively unscathed from the fallout.
Generally, you will want to avoid selling your small business: During times of economic instability. Check out these links: Mitigating Post-Closing Risks Through The Rep and Warranty Insurance. The post When to Sell a Business appeared first on Sun Acquisitions | Chicago Business Broker and M&A Firm. Contact us today.
Business adversity: An economic downturn, the loss of a major customer or the company’s key individual leader, an adverse market / political condition may drive shareholders to other investment alternatives. Peaked market valuations: When market cycle peaks or an industry fully matures, it may be advantageous for shareholders to cash out.
Conduct a comprehensive economic assessment to ensure the seller can provide the financing. This could involve risk insurance, contingency plans, or renegotiating the financing terms. Understanding the terms and structure of the financing is the first step in evaluating the deal’s potential.
Market Conditions : The current state of the manufacturing industry and broader economic trends can significantly impact your business valuation. Engage a manufacturing business broker to assist in this process. Engaging a professional manufacturing business broker like Lake Country Advisors can greatly simplify this complex journey.
It is important to understand the competitive landscape, the regulatory environment, and the economic factors that may impact the industry. This includes making sure that the business is properly insured and that all taxes and fees are paid on time. Another important factor is to carefully choose the right partners.
It is written in a way that will help you, in case you decide to go about the process without a business broker. You are always welcome to call us or talk to any business broker about the state of the business world. As such, you should hire a consultant or a business broker to help you with setting up your marketing package.
Where hedge funds were the traditional users, we now see a far more diverse group of players, including managed accounts, allocators, insurance firms, family offices and sovereign wealth managers, to name but a few.”
Many clients have asked us our views about how the COVID-19 pandemic will affect the insurance brokerage industry broadly and the M&A and strategic market for brokers in particular. The Insurance Business is a GDP Business – That is the Big Risk What do we mean when we say that the insurance business is a GDP business?
As we have reported throughout the year, the M&A market for insurancebrokers remained at peak, pre-pandemic levels despite all of the public health, political, social, and economic dislocations. S&P reported that the number of insurance brokerage transactions closed in 2020 slightly exceeded those in 2019.
This can help to mitigate the impact of economic downturns, industry-specific challenges, or unforeseen events. The company has acquired businesses in various industries, including insurance, manufacturing, and retail. This diversification has helped Berkshire Hathaway weather economic downturns and achieve consistent growth.
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