MarshBerry M&A Trends - 3Q19

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Valuations are certainly going down soon… right?

The insurance distribution Merger & Acquisition (“M&A”) market maintained its furious pace through Q3 2019. Year-to-Date (“YTD”) through September, there were 451 announced transactions within the space. Overall deal count has surpassed 2017 and 2018, which stood at 418 and 429, respectively. Demand remains incredibly high and there do not appear to be any warning signals of a slowdown in the short term.

Deal values saw another increase through the third quarter. The average transaction price continues to climb with a total potential deal value of 11.56x Earnings Before Interest, Tax, Depreciation and Amortization (“EBITDA”). Comparing this figure to year end 2018, which produced an average total potential deal value of 10.85x EBITDA, valuations saw an increase of .71x EBITDA in the last 12 months. This represents a 6.5% increase.

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