What You Have to Know
- Greater than 4,000 impartial businesses are nonetheless on the market.
- One vendor turnoff: Weak gross sales and income.
- One other turnoff: Foggy monetary reporting.
One of many non-public fairness leaders supporting an unlimited wave of life, well being and annuity company purchases says the patrons nonetheless have money they’ll use to make offers.
Edward Shahnasarian, a managing director within the Monetary Expertise & Providers space at Thomas H. Lee Companions (THL), estimated Tuesday, in an electronic mail interview, that firms like AmeriLife have acquired about 200 to 300 U.S. insurance coverage businesses and brokerage corporations previously few years.
That leaves about 4,000 to five,000 impartial businesses obtainable for buy, Shahnasarian famous.
“Nearly all of the remaining corporations might be good matches for acquisition by an present massive, PE-backed platform like AmeriLife,” Shahnasarian mentioned.
What It Means
You probably have a profitable company you’d prefer to promote, you should still be capable of discover patrons.
THL
THL is an funding agency that has raised about $35 billion in capital and used the capital to put money into about 170 firms. The funding targets have used money from THL and different sources to make about 600 extra offers with a complete worth of greater than $250 billion.
Shahnasarian has helped THL oversee its relationship with AmeriLife, a Clearwater, Florida-based distributor that has grown quickly by way of acquisitions. AmeriLife now has relationships with about 300,000 brokers and advisors, and the RIAs in its community have $7.5 billion in belongings below administration.
AmeriLife opponents embrace Integrity Advertising and marketing, Simplicity and NFP.
Shahnasarian additionally helps to supervise THL’s relationships with Hexure, an annuity illustration system firm, and Hightower Advisors, an RIA agency.
