Volume in the merger and acquisition sector has declined 48% in comparison to Q1 of 2022, and it has declined 27% from Q4 of 2022 according to insights from Dealogic. For many independent agents, M&A is an integral part of their growth strategy, offering a fast-tracked opportunity to expand their agencies through expansion into new geographies, product lines or achieving economies of scale. Fortunately, there still is plenty of appetite for independent agents to succeed in this challenging environment.
The rising cost of financing and challenging economic environment have caused acquisitive organizations to proceed with caution. The good news is independent agencies are well known for their resiliency regardless of the economic outlook, with organic growth for the sector having gone below zero just twice in the last two decades. They are an ideal choice for buyers looking to grow their organizations without the risk and volatility that many other industries experience.
Read the full article, featuring Sean Kenny, SIAA’s Senior VP of Corporate Development, Published July 10, 2023 on blog.pia.org.