Successful Acquisitions

SEPTEMBER 11, 2023

The Verdict is In on the Sell Side: Business Valuation Basics By Brian Goodhart Valuation is a fundamental aspect of the complex and intricate world of mergers and acquisitions. Today, we will delve into the intricate art and science of valuation, exploring its various components and purposes.

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Valuation Business Discounted Cash Flow Mergers and Acquisitions 64

Sica Fletcher

JUNE 11, 2024

The following report contains our projections for Q3 2024 insurance broker valuation multiples. Insurance Broker Valuation Multiples: Q3 2024 Projections Using these numbers as a baseline, let’s examine the insurance industry more closely to identify influential factors behind its specific changes. as of H1 2024.

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Broker Insurance Valuation S&P 52

Software Equity Group

MAY 7, 2024

But what are the key influences shaping valuation multiples in today’s M&A deals? As you contemplate your exit strategy, it becomes increasingly crucial to understand the external factors driving the valuation of your SaaS company. It’s important to remember that no key metric exists in a vacuum.

M&A 52

M&A Valuation Economics Business 52

Software Equity Group

MAY 8, 2024

But what are the key influences shaping valuation multiples in today’s M&A deals? As you contemplate your exit strategy, it becomes increasingly crucial to understand the external factors driving the valuation of your SaaS company. It’s important to remember that no key metric exists in a vacuum.

M&A 52

M&A Valuation Economics Business 52

Sica Fletcher

MARCH 12, 2024

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.

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Valuation Insurance M&A Profitability 52

Mergers and Inquisitions

MAY 3, 2023

To be fair, in some industries – like commercial banks and insurance within FIG – the DDM is a core valuation methodology. In other words, you profit based on the company’s dividend s and the potential increases in its stock price over time. But outside of those, its status is murkier.

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Valuation DCF Debt Financial Models 64

Focus Investment Banking

SEPTEMBER 4, 2024

My biggest takeaway from this year’s MTD 100 is the growing number of large tire dealerships that are either owned or backed by private equity groups. based private equity firm Leonard Green & Partners remains a majority investor in Sun Auto Tire & Service Inc. He has worked with many private equity firms.

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Private Equity Equities S&P Mergers and Acquisitions 52

Mergers and Inquisitions

JULY 31, 2024

If you ever tire of the hype around tech, industrials private equity might be an ideal hiding spot. Morgan’s acquisition of Carnegie Steel in 1901 – was an industrials private equity deal. Table Of Contents Industrials Private Equity Defined What Has Drawn Private Equity Firms to Industrials Companies?

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Private Equity Equities Middle Market Debt 66

Wizenius

APRIL 8, 2023

Equity Value (today) = Equity Value at end of forecast period/ (1+Target rate of Return)^n 4) Because this is the valuation of the start-up before the VC invests his/her money in the business it is known as Pre-Money Valuation of the start-up 5) VC investors receive an equity share of the business in exchange for their investments.

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DCF Valuation Equities Public Trading 52

Sica Fletcher

APRIL 30, 2024

This article presents a step-by-step guide on how to value an insurance agency - both in the sense of how a valuation agency/M&A advisor goes about valuation, and also in terms of what insurance agency owners can do to maximize their valuation prior to running an M&A deal.

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Insurance Valuation M&A S&P 52

FineMark

JANUARY 17, 2024

The equity market also noted the Fed’s comments as investors piled back into equities and the S&P 500 finished the year up more than 26%. What’s intriguing about the chart in Figure 2 is how differently equities, as measured by the S&P 500, performed under each period, returning a modest 5.7%

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S&P Equities Valuation Investment 52

How2Exit

OCTOBER 3, 2022

As the founder/owner of a Managed Services Provider (MSP), it’s important to know the value drivers that should inspire your business strategies -- whether you plan to sell today or in the future. It’s the best starting point toward achieving an optimal net profit. billion (USD) in 2020.

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Management S&P Acquisitions Business 100

Focus Investment Banking

JULY 16, 2024

This was despite a strong overall market that pushed the S&P 500 up 3.9% However, this performance once again lags the broader indices by a fairly wide margin, as both the S&P 500 and NASDAQ gained more than 20% over the past year. and the NASDAQ up 8.3% over the same three-month time frame.

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Business S&P M&A Engineering 52

MergersCorp M&A International

NOVEMBER 1, 2024

A common approach to valuation is to consider the fee structure: AMCs may charge a percentage of AUM (often ranging from 0.5% Valuation Methods When it comes to the actual valuation, several methods can be employed: Comparable Company Analysis (Comps): This method involves comparing the AMC to similar firms in the industry.

Asset Management 52

Asset Management Management Valuation Discounted Cash Flow 52

Sica Fletcher

OCTOBER 23, 2024

Who Performs A Valuation? RIA valuations are typically performed by one of three parties: The M&A Advisor A Third-Party Specialist The Seller Themselves Although many sellers attempt to perform their own valuations, we strongly recommend against this.

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Valuation M&A Insurance Advisory 52

Software Equity Group

MARCH 13, 2023

On the surface, things looked rough: the Dow Jones, S&P 500, and the NASDAQ all finished the year with significant losses, with tech stocks hit particularly hard. While some public strategics backed off, they were more than made up for by private equity companies with plenty of dry powder and a healthy competitive environment.

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The TRADE

JUNE 23, 2023

What movement have you seen in the global equities market in the last week? For the first time ever, yield on cash, bonds and equities is the same in the US. That is the same level as the expected 12-month forward earnings yield across the S&P 500, which has risen by >15% since January.

Equities 59

Equities Investors Funds Trading 59

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.

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Insurance M&A S&P Valuation 52

Mergers and Inquisitions

MARCH 8, 2023

As the delivery date approaches, the underlying commodity’s price and its futures price converge. The Skills Required for Commodity Trading You do not use traditional financial statement analysis or valuation in commodity trading because the underlying asset is a futures contract , not a stock.

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Funds Finance Finance Trading 119

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.

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Funds Management S&P Recruitment 59

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 Equities Acquisitions 40

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.

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M&A Insurance Valuation Equities 52

Mergers and Inquisitions

MAY 24, 2023

They have their investment thesis and valuation, and the earnings announcement is the event that unlocks value… …but this is not what “event-driven” means in most cases. A long/short equity fund could find an undervalued company, like it for reasons A, B, and C, and argue that its price will increase by 50%.

Funds 64

Funds Investors Mergers and Acquisitions Mergers 64

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.

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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

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. Still Uncertain?

M&A 52

M&A Insurance S&P Valuation 52

Sica Fletcher

JULY 11, 2024

However, the brokerage's tech stack now handles many of these job functions, which significantly improves the bottom line and increases profitability. Pay attention to how the equity a buyer offers is actually valued. Equity used to consist of senior debt (i.e., Streamlined Operations.

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M&A Insurance Debt Equities 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.).

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M&A Acquisitions Sale Investment 130

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.,

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.

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M&A Insurance Equities S&P 52

Focus Investment Banking

JANUARY 18, 2024

The S&P 500 has recently traded near 4800, close to its record at the end of 2021. And, at least in recent years, there has been enough capital at private equity firms to handle any liquidity needs. As 2024 starts, the U.S. stock markets are at or near their all-time highs. It seems that the trend is to stay private.

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IPO Consulting Corporate Finance Professional Services 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

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?

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Insurance M&A Valuation Advisory 52

Mergers and Inquisitions

SEPTEMBER 20, 2023

Technical Questions – You could get standard questions about accounting and valuation or VC-specific questions about cap tables, key metrics in your industry, or how to value startups. Q: Why not private equity, growth equity, hedge funds, or entrepreneurship? Q: Which current startup would you invest in?

Capital 59

Capital Valuation Investment Portfolio 59

Wizenius

JULY 17, 2023

Financial Statements: Master the concepts of Balance Sheet, P&L, and Cash Flow statement. Dig deeper into articles related to Equity markets, IPOs, M&As, Private Equity Fundings, and Startups. As a BBA graduate or any undergraduate, you have the advantage of time! Time is on your side, so make the most of it.

Investment Banking 52

Investment Banking Banking Bank Investment 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

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.

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Investment Banking Insurance Banking Bank 52