Sica | Fletcher Q1 Index Reveals Year-over-Year Increase in M&A Activity
Sica | Fletcher releases the Q1 2023 Agency & Broker Buyer Index. The Index now tracks 22 of the most active acquirers in the insurance brokerage space.
The Sica | Fletcher Broker Buyer Index is the most comprehensive report on insurance brokerage M&A activity in existence. It uses self-reported data provided by 22 of the industry's most prolific agent and broker acquirers to track deal activity. These 22 agent and broker acquirers accounted for 71% of all deal activity in the agency and brokerage space in Q1 of 2023.
According to the report, in Q1 2023 SF Index members have acquired 116 Agents/Brokers, totaling $361 million of agency and broker revenue, approximately 50% higher than what was acquired in Q1 2022. The average revenue of acquired agencies was also higher, at $3.11 million versus $2.06 million in Q1 2022. BroadStreet Partners leads the way with 14 deals in Q1 of 2023, a 180% increase from Q1 2022. They are followed by Gallagher, World Insurance Associates, and Risk Strategies.
"Most Sica | Fletcher Index Members demonstrated substantial increases in terms of the number of Q1 2023 deals compared to Q1 2022. While there are still many well-funded buyers flush with capital in the market, investors have become more selective when evaluating acquisition opportunities," says Managing Partner Mike Fletcher.
The report, which is published quarterly, reflects the increasing dominance of private equity-backed firms in insurance brokerage M&A. About 90% of SF Index transactions were executed by private equity-backed firms during Q1 of 2023, a trend that has remained consistent over the past years.
For more details, download the Q1 2023 Sica | Fletcher Agency & Broker Buyer Index here.
About Sica | Fletcher: Sica | Fletcher is a strategic and financial advisory firm focused exclusively on the insurance industry. Founders Michael Fletcher and Al Sica are two of the industry's leading dealmakers who have advised on over $12,000,000,000 ($12 billion) in insurance agency and brokerage transactions since 2014. According to S&P Global, Sica | Fletcher ranked as the #1 advisor to the insurance industry for 2017-2023 YTD in terms of total deals advised on. Learn more at SicaFletcher.com.
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