M&A Services, Inc. Newsletter Q3 2020
Letter from the CEO
We hope this letter finds you, your colleagues and family well.
2020 has been a peculiar year, to say the least. Full of unpredictability and challenges of so many kinds.
However, M&A Services has been committed, year after year, regardless of circumstances, to look after our new and existing clients, to make sure they get the highest level service and peace of mind they deserve, especially through trying times like the ones we are living.
Our team has worked relentlessly through this pandemic to continue to deliver the best results and although the process for deals have changed, the activity remains strong and we are proud to say we have closed in excess of $1 Billion in transaction value over the past 24 months with several more transactions on track to close before year end.
As always, we would like to extend you an invitation to start a confidential conversation with our team of advisors so we can help your business in realizing its corporate objectives, now or in the future. Our services are exclusive to the insurance industry, involving insurance companies, runoff businesses, captives, risk retention groups, shell companies, MGA’s/MGU’s, wholesalers, retailers, third party administrators, capital raises, program placements and valuation opinions. Our practice exceeds 20 years in business and our relationships and experience allow us to provide unbiased advice and concierge level assistance at all times.
As the Holidays approach, we hope you find many things to be thankful for and that the safe physical distancing that we have grown accustomed to does not apply to our thoughts and hearts. May the New Year be full of hope and resilience for all of us.
Wishing you success and good health,
Virtual Meetings and Conference Calls
Throughout the year M&A 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 insurance marketplace.
Given the present challenges and changes posed by the COVID-19 pandemic, several industry events have been cancelled, postponed, or will be held virtually.
However, our advisors believe that interaction is critical to keeping pace with changing market conditions, especially at this unprecedented time.
Our team is available for virtual meetings and conference calls to address any questions you may have regarding new strategies that are available to carry on with your corporate development goals.
Please don’t hesitate to contact Vanessa Silva at firstname.lastname@example.org to schedule an appointment. All inquiries are kept strictly confidential.
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:
- Wanted – Widely licensed P&C Carrier Shell
- Single State NJ Carrier, pre-84 premium tax advantage available
US Agency Shell Company:
- 40+ state agency shell company available for sale.
- Bermuda Class 3A Reinsurance Shell for sale
Please contact Paul Procops at email@example.com to learn more about the process and the opportunities above.
Active Project – Grant
M&A has been retained by leading technology company with a 20 year track record. This client is seeking retail nonstandard auto insurance agencies to partner with and/or acquire in order to provide SR22 insurance policies to their existing client base of approximately 100,000 users nationwide.
For more information on this project please contact Dan Baransky.
Active Project – Alliance
M&A has been retained by a well-capitalized insurance group looking to acquire, through a loss portfolio transfer or reinsurance agreement, blocks of annuity (fixed or variable), life and/or Long Term Care Business. Our client is well versed in the management of these books of business and looking for carrier partners who seek a long term solution for blocks of business which are no longer core to their operations.
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.
The valuation and market for insurance distribution businesses is at an unprecedented peak driven primarily by private equity capital that has made significant platform investments in the past several years 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.
For more information on Distribution please contact Chris Hughes directly at email@example.com
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 firstname.lastname@example.org . All inquiries will be held strictly confidential.
While most maybe working from new home office venues, that has not stopped program opportunities in the market. We continue to see private equity at work in the marketplace. Whether it is the continued development of acquisitions on the distribution side or the development of program capacity through the creation of new carriers, private equity is hard at work. The creation of these carriers should theoretically add more capacity for both new programs or the movement of programs to a more ‘user friendly’ environment. Often these new carriers will combine both the new capacity and the ability to acquire the distribution as part of the process.
We are still in a time that has not allowed for face to face meeting at conferences or venues that help to promote transitioning business. While Zoom, Teams and other venues will certainly become valuable assets going forward, they cannot replace the complete picture face to face meetings present. We look forward to getting back to the good old handshake meetings and sitting across the table and discussing program opportunities.
For more information on Programs please contact us at email@example.com.
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 S&P Global Market Intelligence/SNL Financial.
Our Services include:
- Carrier M&A Transactions
- Agency M&A Transactions
- Agency Financing
- Capital Raising
- Strategic Advisory
- Valuation Services
- Program Business
- Renewal Rights
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 2020 Merger & Acquisition Services, Inc. & Merger & Acquisition Capital Services, LLC. All Rights Reserved