Published
on February 4, 2019 Lance LeTourneau P&C Integration Project Manager, PMP, PSM I, ITIL 4
The Optis Partners report shows a surge in M&A activity
in the 4th quarter of 2018. The year surpassed 2017 in completed transactions,
which was unexpected (2017 had 611 and that was in theory the high water mark).
There were 626 reported deals during the year, there were 330 deals in the
second half of the year alone. This is more than the annual deal flow for the
entire year during 2014, or any year preceding it.
The leaders in transactions are as follows: Acrisure - 101,
Hub - 59, Assured Partners - 37, Gallagher - 36, and Broadstreet with 36.
Most of the activity performed by Hybrid P/E groups at about
66% of transactions. the accelerated activity is driving multiples for
valuation up and agency values are increasing as a direct result.
Smaller insurance agencies should strongly consider merging
or acquiring their neighbors/competitors. The valuation multiples are much
lower for the smaller shops, they cannot command the same multiple or interest
in acquirers as the larger operations will.
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