AssuredPartners Reaches the Top
The M&A roller coaster this year has the inevitable twists and turns.
It appears that the M&A market in 2014 is going to be a roller coaster ride highlighted by a lightning fast pace, a series of ups and downs, unexpected twists and turns, and the usual suspects sitting in the front cars.
Don’t be surprised to see a few new faces on the coaster though.
Just as in 2013, February ended with 19 announced transactions. The year-to-date deal count is 54, a number we didn’t see until the end of April last year. Activity remains fairly constant, and we believe the outlook for the year will continue to be bullish.
Keep an eye on the wholesale market. Seven wholesale firms were acquired in February. The wholesale count is now 18—half of all wholesaler deals completed in 2013.
Year to date, we’re at 54, a number we didn’t see until the end of April last year.
AssuredPartners—last year’s top acquirer—continues to pace the market with seven deals. It announced three acquisitions in January and four in February. The targets spanned six states while two deals were in New Jersey.
Three usual suspects are in the second car behind Assured. Hub International, Marsh & McLennan Agency (MMA) and USI have all announced three deals through February. MMA’s three deals match its entire count for 2013. This year’s activity is highlighted by the acquisition of California-based Barney & Barney. USI, with five deals last year, is also increasing its activity to kick off the year. It completed three transactions and is finalizing a multi-location acquisition from Wells Fargo.
Early signs point to a strong year. Beyond the typical players at the top of the buyer list, firms including Cross Insurance, CBIZ and Edgewood Partners Insurance Center (EPIC) have all matched or acquired half of their 2013 acquisition totals. EPIC made two acquisitions this year, both outside California where its acquisition growth has historically been focused.
If the first two months are any indication, retail and wholesale activity will continue to ebb and flow. We expect more large acquisitions to occur and for activity to remain constant. Familiar and new faces will continue to partake, so please keep your hands and feet inside the car at all times. There are likely to be a few unexpected hills to climb and twists and turns throughout the duration of the ride.
