Agent & Broker 2017 Merger & Acquisition Update

PE Purchase and Re-cap Transactions  (*)

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Summary and Spin:

• Barring external macro economic factors, no compelling reason for any pull-back in M&A activity.
• Inventory of interested sellers remains high
• Variance between internal transaction value and 3rd party acquisition value hard to pass up
• Favorable economy, stable insurance market post 2017 disasters, and easy access to relatively inexpensive capital for Buyers
• Plenty of willing investors and lenders to fund PE / Hybrid activity
• As a Buyer, manage cash flow and be careful not to overpay
• As a Seller, identify the best cultural and operation fit and try to take advantage of competitive market pricing before things change