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Laying The Path Toward Each Unique Goal
When working with insurance brokerage leaders, we need to gain a clear understanding of their personal and professional history to assist in charting their path toward their ultimate goals. Our approach is a holistic one. We apply our financial engineering analytics, operations know-how, and extensive knowledge of the insurance M&A marketplace to develop a strategy for our client partners that will enhance shareholder value, as well as career satisfaction (having the most valuable agency on the planet but being 100% miserable is not a highly recommended strategy).
Insurance M&A Services
Sell-Side Insurance Advisory
Deals we close for our Insurance Agency clients average a 30% higher sale price for sellers.
In almost any given market across the country there are at least ten institutional buyers for every seller. This means that the probability that you are dealing with the perfect buyer for your firm is only 10%. Now, the buyer is a corporate powerhouse with a track record of acquiring hundreds of agencies and they know you are only talking to them, what's the probability you ever get their best deal? Let’s also call that 10% (which is probably too high). So what is the probability you are getting the best deal for your firm? 1%! This is a case where it is not good to be a One Percenter.
We understand that our clients are salesmen and brokers who are certainly qualified to make sales. However, selling an agency is a complicated process that needs to be handled by experienced parties. You spend your whole career building a great and valuable firm and in one fell swoop reduce your net worth by 30% because you thought you could do it on your own.
After we are retained, the process below is typically as follows:
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Intro Call with Advisory Team: The first step in the engagement process is a short introductory call with the client and the Sica | Fletcher advisory team. The purpose is to outline the process, ask a few questions about the business, and discuss the information we will need to begin.
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Evaluation and Analysis Phase: This process is designed to be as efficient and streamlined as possible and is typically accomplished electronically and via conference calls. The timing depends on how quickly we receive and process the information provided. Completing the evaluation of the business and generating a presentation is likely to take a few months, although the timing can vary.
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Strategy Session: Once the evaluation of your business is completed, we schedule a strategy session with our client, usually via teleconference. The session typically takes 1.5 hours, during which Sica | Fletcher discusses its observations regarding the company, outlines the marketplace and strategic alternatives, and works with our client to reach conclusions about next steps.
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Strategy Execution: As a result of the Strategy Session, Sica | Fletcher and the client collectively decide on a course of action. Sica | Fletcher then executes the strategy to which all parties have agreed.
Sica | Fletcher excels in each phase of the assignment process due to the quality of our people, our many decades of transaction experience, and our deep relationships with all the strategic players in the industry.
Buy-Side Insurance Advisory
We build brokerages into powerhouses, but above all, help each client reach their optimal situation.
Are you looking for that extra push that can grow your brokerage into a powerhouse? We work with our clients to form a viable investment / acquisition strategy and then we execute on it.
Our financial engineering analysts perform a thorough review of your company and growth goals. Then, our team of dedicated corporate development professionals scour the market for deals that fit our clients’ criteria based on the analytical strategy created by Sica | Fletcher. Once sourced, we negotiate the deal on behalf of our client, providing financial modeling and analysis, valuation guidance and support, due diligence and ultimately driving to a successful close.
If you are looking for that extra push that can grow your brokerage into a powerhouse, we will find you opportunities.
Strategic Advisory
Our mission is first and foremost to raise the valuation of our clients' agencies.
We start with a baseline valuation of the agency. Then everything we do or plan on revolves around moving that valuation from the lower left corner of the chart to the upper right corner. We live by the principle that using value as a measuring stick, brings discipline to all strategic decisions.
When the goal is to increase the value of the agency everything else falls into place. For some of our clients the goal is to protect and maintain that value at all costs. For others it's about generating meaningful risk adjusted returns on their largest asset, their agency, or transferring ownership from one generation to the next without skipping a beat.
How Sica | Fletcher Maximized Value for Caton Hosey Insurance
