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 Mergers and Acquisitions Discounted Cash Flow 64

Sun Acquisitions

NOVEMBER 17, 2023

When two companies decide to join forces, understanding the value each brings to the table is critical to making informed decisions. Valuation is the process of determining the worth of a business, and it plays a pivotal role in M&A transactions. It involves forecasting cash flows and applying a discount rate.

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Mergers and Acquisitions Valuation M&A Mergers 59

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

Sica Fletcher

OCTOBER 16, 2024

The following article examines valuation multiples for registered investment advisor (RIA) firms as of 2024, based on data gathered from our SF Index and available third-party sources. How these client demographics affect RIA valuations really depends on what the buyer is looking for, as indicated by the table below.

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Valuation Mergers and Acquisitions Insurance M&A 52

How2Exit

OCTOBER 6, 2022

Revenue Growth: While demonstrated revenue growth and a solid pipeline will lend itself to higher valuations, the quality of that revenue growth is also important. Gross Margin: Gross Margin is one of the most important lines on your P&L and is the way buyers measure how efficiently your MSP makes money.

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Management S&P Valuation Acquisitions 130

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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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.

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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.

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M&A Valuation Economics Business 52

Sica Fletcher

MARCH 14, 2024

Disclaimer: The article below contains a quick and easy method for calculating the ballpark value of an insurance agency using standardized market information. Insurance agency valuation is a critical component of running an M&A deal, but executing this multi-step process well requires a great deal of specialized education and experience.

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Insurance Valuation M&A Consulting 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

Francine Way

JULY 8, 2017

Peaked market valuations: When market cycle peaks or an industry fully matures, it may be advantageous for shareholders to cash out. Regardless of the base reason(s), the current owners and management of a company looking for a new owner should seek to: Maximize return on investment for current owners.

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M&A Acquisitions Sale Investment 130

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

Sica Fletcher

JUNE 14, 2024

M&A professionals prefer it over other valuation methods for this reason, because it provides buyers with a clearer picture of how much the agency is worth to them. While valuation multiples – especially for private companies – have been a hidden source of information for decades, it has become more transparent in the last few years.

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Insurance Valuation M&A S&P 52

How2Exit

MARCH 23, 2023

It is also important to have an accurate valuation of the business and to be aware of any liabilities or assets that could affect the sale. It is important to understand what the buyer is looking for and to be able to provide them with the information they need in order to make an informed decision. Transferability is also key.

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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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Wall Street Mojo

JANUARY 17, 2024

A profit and loss (P&L) statement, sometimes called as an income statement, is a financial report that provides investors and outsiders with a financial overview of a company. The P&L outcome plotted on a trendline assists investors in understanding the organization’s performance over time.

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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. Within the MSP space, data security remains white hot.

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Management S&P Acquisitions Business 100

Sica Fletcher

SEPTEMBER 17, 2024

When insurance agency sellers have already met with prospective buyers, they may have been offered a valuation based on their “adjusted EBITDA.” The following article provides a brief overview of EBITDA and adjusted EBITDA valuations for insurance agencies. What Is EBITDA? What Is Adjusted EBITDA?

Insurance 52

Insurance Valuation Profitability M&A 52

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.

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Insurance S&P M&A 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

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.

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Insurance Valuation M&A S&P 52

Sica Fletcher

APRIL 2, 2024

Insurance M&A Deal Valuation, 2024 Starting out in 2024, EBITDA and revenue multiples are in a good place, experiencing modest YoY growth despite the economic downturn of the last 18 months. In deals with the highest earnout, business owners turn to a specialized M&A advisory firm to handle negotiations and oversee valuations.

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Insurance M&A S&P Broker 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.

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Insurance M&A S&P Valuation 52

Wall Street Mojo

JANUARY 15, 2024

This tool proves indispensable for students and their families in making informed decisions regarding loan affordability, repayment terms, and budgeting for educational expenses. However, it’s important to note the limitations of educational loan calculators. How to Calculate? Each of such points cost 1% of the loan amount.

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Education S&P Financial Models Financial Modeling 52

Sica Fletcher

MARCH 26, 2024

For more comprehensive information, however, we provide descriptions of each step in greater detail further below the table. 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. Account-Based.

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M&A Insurance Valuation Advisory 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.

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Insurance Business Valuation M&A 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. Stay informed about industry trends and regulatory changes.

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Insurance M&A Valuation Advisory 52

The TRADE

JUNE 23, 2023

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. This could shift again the pendulum towards a more defensive positioning in which investors require higher valuation premium to get compensated on risk assets.

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Equities Investors Funds Trading 59

Wizenius

JULY 25, 2023

Analyze the available information and outline the key components on a blank paper or through a flow diagram. 4) Flow: Connect the Statements Create the cash flow statement by linking your Balance Sheet and P&L. Roll forward the Balance Sheet using the P&L and Cash Flow.

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Financial Modeling Financial Models Investment Banking Bank 52

Solganick & Co.

DECEMBER 21, 2023

While overall deal volume dipped slightly compared to the record-breaking highs of 2022, falling by around 5%, the total value of transactions remained surprisingly resilient, hovering near the $400 billion mark, according to data from S&P Global Market Intelligence.

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Focus Investment Banking

JANUARY 18, 2024

The S&P 500 has recently traded near 4800, close to its record at the end of 2021. About the only new entrant to the public markets has been KLDiscovery, a provider of e-discovery, information governance and data recovery services, which went public via a special purpose acquisition company (SPAC) transaction in 2020.

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IPO Consulting Corporate Finance Professional Services 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. This is because company B had a higher initial valuation of the brokerage as well as an official valuation of the equity in their company. Are you meeting the firm’s principals? Still Uncertain?

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M&A Insurance S&P Valuation 52

Sica Fletcher

JULY 11, 2024

Our research team averaged the information using data from our Sica | Fletcher index, which monitors approximately 70% of insurance sector transactions. However, the brokerage's tech stack now handles many of these job functions, which significantly improves the bottom line and increases profitability. Streamlined Operations.

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M&A Insurance Debt Equities 52

Sica Fletcher

APRIL 11, 2024

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. Pay close attention to the multiple being offered.

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Insurance Advisory M&A Investment Banking 52

Sica Fletcher

JUNE 20, 2024

The table of contents below offers quick links for readers seeking specific information in later sections. PE firms rely on leveraged buyouts (LBOs) for the lion's share of their deals, which often involve using the acquired company’s assets as collateral to insure the loan used to purchase it. for insurance agencies.

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M&A Insurance Valuation Equities 52

Sica Fletcher

MAY 29, 2024

2) our team noted unexpected increases in the valuation multiples offered for insurance agencies, as depicted below. Understanding the Insurance M&A 2024 Outlook There’s only so much information and insight that we can put into a report like this. While insurance M&A did see slight dips in deal volume and average value (Fig.2)

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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. A: You would start by reading about the market and its current startups and finding product, team, and financial information.

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