Get on the Front Foot in a Shrinking Broker Market

Consolidation in the broker market shows no signs of slowing down – in fact, according to Allianz, the number of broker sales in 2018 was up by around 33% compared with 2017[i].

As a result, the market is polarising, with firms being snapped up fast – by larger firms, market competitors seeking scale and accelerated growth, or by private equity investors.

So the question for ambitious brokers is “How to respond”? For many, the choice may eventually come down to "Buy, sell or refocus"?

That is why we have put together an end to end acquisition solution – to help Marsh ProBroker members identify acquisition growth opportunities or refocus by selling off personal lines books ‒ then act fast to seize the opportunity:

  • Buy: We’ve built partnerships to give our members simplified and rapid access to acquisition funding. Acquisition funding is available on five-year terms, without the need for personal guarantees.
  • Introductions: Marsh ProBroker members can call on expert help to identify and approach potential acquisition targets, to get conversations started.
  • Due diligence: Members can call on a specialist accountancy firm to manage a smooth purchase process and minimise tax exposure.
  • Marketing: Marketing and communications specialists are on hand to help with vital market, staff, and customer communications – to minimise uncertainty during a purchase and help prevent client or staff losses.
  • Compliance and HR: Clearly, combining two businesses into one creates compliance and employment risk, particularly if the two firms previously operated different, even conflicting, regimes. Marsh ProBroker members can work closely with experts from Marsh Networks Business Services to help identify and mitigate these risks, and reset the combined businesses on to solid foundations.
  • Sell: In some cases, brokers want to refocus on a commercial only model, selling off personal lines books to generate growth funding. Marsh ProBroker members get help here too. They can work with a pre-qualified partner to sell-off any unwanted personal lines business while protecting jobs.

For more information Marsh ProBroker members should contact their Business Development Manager

Not a member? Drop us a line to find out more or request a call back.

 

[i] https://www.allianzebroker.co.uk/news-and-insight/news/full-year-review-2018-by-simon-mcginn-general-manager/broker-market-consolidation.html

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