Letter from the CEO
We hope the first half of 2017 has been a successful one for you and your organization.
We are pleased once again to be in the top of SNL rankings as the number one advisor for insurance carrier transactions,
based upon completed deals in 2016 in the United States and Canada. We are closing in on serving the insurance industry
for 20 years, and to be noted as a top advisor based on deal volume is a noteworthy accomplishment for the firm and our
This quarter we have already closed multiple transactions including the acquisition of Reltco and National Assurance Title
by Live Oak Bancshares, and Fireman’s Fund Insurance Company of Ohio by State National.
We would like to thank our clients for their trust in us to meet their business developments objectives.
And we would like to invite our future clients, both buyers and sellers, including; insurance carriers, MGA’s/MGU’s, agencies
and third party administrators, to reach out to us and start a confidential conversation with our team on how M&A Services
can help with unbiased advice, insight into industry trends and dedicated guidance to achieve strategic and financial goals.
We look forward to hearing from you
Jason C. Murgio
Upcoming Webinar Events
Webinar Series – Insurance Agency Growth
M&A Services, Inc. & Live Oak Bank
Through this six-part series you’ll continue to gain knowledge on everything from valuing an agency, to due diligence and
contracts, to various strategies for monetizing your agency.
Join Our Next Webinar:
Book Roll Strategy: How to monetize your Agency without selling it.
June 14, 2017 | 1 p.m. ET
Live Q&A immediately following presentation
The Book Roll strategy offers a unique opportunity for agencies to maximize the commission and fee income streams of
their existing books of business without relinquishing any control or ownership of their agency. Insurance Carriers have
increasing appetites for profitable books of business – both in the program space as well as well performing books of
Please join Chris Hughes for a detailed explanation of the Book Roll strategy. Learn what types of agencies and books are
the best candidates and see examples of Book Roll purchases.
Up-Coming Webinars on this series:
Recasting and Financing for Agency Owners
July 12, 2017 | 1 p.m. ET
The Leveraged Buy-Out
August 9, 2017 | 1 p.m. ET
Upcoming Industry Events
Throughout the year Merger & Acquisition Services travels to numerous locations, whether hosting a hospitality suite,
serving as a panel speaker, or just being on hand to meet face to face with clients and prospective clients to discuss the
Our advisors believe this interaction is critical to keeping pace with changing market conditions.
The list below represents select locations where advisors of Merger & Acquisition Services will be available to meet with
new and existing clients.
SAN DIEGO, CA – September 10 – 13, 2017 during NAPSLO Annual Convention
BALTIMORE, MD – October 8 – 10, 2017 for CHART convention.
CHICAGO, IL – October 15 – 17, 2017 during PCI Annual Meeting.
SCOTTSDALE, AZ – October 16 – 18, 2017 for Annual Target Markets Summit.
ATLANTA, GA – November 1 – 3, 2017 during PLUS Annual International Conference.
GRAND CAYMAN – November 28 – 30, 2017 for IMAC – Cayman Captive Forum.
If you would be interested in meeting with us please contact Vanessa Silva at email@example.com to schedule an appointment.
MGA Book Roll
M&A Services’ Book Roll offers a unique opportunity for Program Managers and MGA’s to maximize the fee income stream of their existing books of business without selling their agency. This strategy is ideal for principals that recognize the value of the business they produce but not interested in divesting ownership. It allows agency owners to extract the embedded value of stable, low loss ratio business by partnering with highly rated paper who can assist and foster growth of existing books of profitable business.
The program provides the following benefits for agency principals:
Allows the principals the ability to monetize their agency immediately without giving up any control or ownership Continue to receive a market based commission structure
Partnership with established, financially sound, committed “A” rated carriers
A long term appointment contract offering stability and consistency in your markets
There is no financial obligation borne by the program manager to participate as M&A Services’ fees are borne by the carrier M&A Services has nearly two decades of experience in the insurance sector, working with carriers, program managers and agencies, allowing us to help parties maximize their revenue stream.
If you would be interested in learning more about how this Book Roll program works and if your agency might qualify, please contact Danial Baransky directly at firstname.lastname@example.org. All inquiries are kept confidential and you incur no obligation to M&A Services
M&A Services is considered to be the trusted source for insurance companies and agencies that seek to start up an insurance carrier operation, expand their geographic footprint or enter the US insurance market. Successfully completing over 100 Insurance Shell Company transactions in the past 10 years, M&A Services continues to be the leading advisor throughout the United States. M&A Services brings a team of senior financial advisors who can assist in all matters of a transaction and are available to discuss the process of buying and/or selling an Insurance Shell Company.
Current L&H Opportunities:
Wanted – Client seeking widely licensed life, annuity or health company
Single state L&H New York Shell
Current P&C Opportunities:
Widely authorized Excess & Surplus Lines company with national authorizations
Small Southeast Admitted Carrier
WANTED – Client seeking Widely Licensed P&C Admitted Carrier Please contact Paul Procops at email@example.com to learn more about the process and the opportunities above.
The valuation and market for insurance distribution businesses is at an unprecedented peak over the past twelve months and is expected to remain high for the next six to eighteen months. Industry valuations are driven primarily by private equity capital that has made significant platform investments in the past three years, leveraging 3:1 and 4:1 with historically low interest rate debt. Further, stock market prices and trading multiples for publicly traded brokerage firms are at all-time highs, allowing the publicly traded acquirers to compete with the private equity aggregators at the higher valuations. This combination of low interest rate leveraged private equity capital and high priced publicly traded companies has created an expansive and competitive landscape for insurance distribution assets, and therefore, increased the multiples of earnings (EBITDA) valuations for small and mid-sized distribution assets. Currently, the market is priced at approximately a 50% premium to valuations from two to three years ago. For more information on Distribution please contact Chris Hughes directly at firstname.lastname@example.org
Through our registered broker-dealer Merger & Acquisition Capital Services, LLC we develop custom financing solutions for agencies of all sizes. M&A Services’ team of experienced dealmakers advises our clients through all aspects of capital financing and M&A transactions including sourcing lenders, producing offering memorandums, and assisting in preparing presentations for potential lenders and equity partners. M&A Services’ expertise and industry knowledge allow us to approach a diverse cross section of capital providers simultaneously which often reduces the total time to fund transactions. Because M&A manages the entire process, agency owners are free to focus on running their business rather than managing the capital raising effort. If you are currently looking to raise capital for your agency, or MGA, to fund an acquisition, a partner buy-out / buyin, or to refinance existing agency debt, contact us today to learn how Merger & Acquisition Capital Services can develop a customized solution for you. Please contact Trevor Murgio directly at email@example.com . All inquiries will be held strictly confidential.
The appetite for MGU/MGA programs will continue to strengthen in 2017. Many carriers have recognized that organic
growth will continue to be challenged as rates continue to soften. Mergers and acquisitions will continue to be one
source of potential growth. Also, program managers are seeking a second carrier to diversify their book of business
and seeking geographic expansion. Carriers have learned that partnering with a quality program administrator can
be very profitable. Competition in the program space will continue to grow which will lead to more ingenuity and
For more information on programs and how our Program Team might help your MGA/MGU, please contact Frank
See at firstname.lastname@example.org or Paul Surdel at email@example.com .
Insurance Programs services offered:
Represent MGAs/MGUs seeking program insurance carriers
Our program carrier relationships are now over 60 and growing
Represent MGAs/MGUs seeking fronting program insurance carriers requiring 100% quota share reinsurance
Represent wholesale brokers seeking to bundle certain profitable homogeneous books of business into
Represent underwriting start-up groups seeking program design and placement consultation
M&A Recent Programs Placed:
Placed an E&S Tier 1 Homeowners program for a southeastern MGA. Program placed with an “A+” carrier,
allowing the MGA to write business in the southeastern and mid-Atlantic states
Placed a Surety contractors bond program for a western MGA. Program placed with a regional mid-western
carrier that was looking to expand their surety writings on the west coast
Seeking Cal WC provider to partner on a unique WC program opportunity. Specialized focus and innovative
product delivery creating substantial savings on loss costs for WC claims
Seeking commercial/private passenger automobile liability provider on Rideshare program opportunities.
Merger & Acquisition Services is a boutique investment bank, specialist advisory and financial services firm devoted
specifically to participants within the insurance industry.
Our mission is to provide concierge-level services and expertise within the insurance industry by assisting firms with
their corporate development and acquisition/divestiture objectives. M&A Services has closed nearly 200 transactions
over the past 20 years and has earned continuous placement within the “Top 5 Financial Advisors in Insurance
Underwriting” according to SNL Financial.
Our Services include:
Carrier M&A Transactions
Agency M&A Transactions
CALL US TODAY at 212-750-0630 for a confidential consultation with one of our senior advisors.
Any information provided herein is indicative only, subject to change without notice, and does not constitute an offer to purchase or sell. Principals retain the exclusive right to negotiate and evaluate any transactions, and advisors of Merger & Acquisition Services, Inc. and Merger & Acquisition Capital Services, LLC. have no authority to do so. Merger & Acquisition Services, Inc. does not underwrite securities, nor advise on, nor effect transactions in securities for the account of others.
* Investment banking services and securities transactions are provided through and completed by Merger & Acquisition Capital Services, LLC., a broker-dealer registered with the U.S. Securities and Exchange Commission and member of FINRA and SIPC.
Copyright 2018 Merger & Acquisition Services, Inc. & Merger & Acquisition Capital Services, LLC. All Rights Reserved