Events

Own Your Brokerage? Know How to Value your Asset

How has valuation played out in the broker channel? How will it in the future?

At our upcoming BIP Talks at this year’s Convention, we’ll be joined by BMO‘s Director of Business Finance Colin Clahane and CW Group Partner Eric Walker in The Broker Valuation Trap. Here we ask our presenters for the inside scoop.

 

TELL US A LITTLE BIT ABOUT YOURSELF AND YOUR EXPERIENCE WORKING ON BROKERAGE VALUATION.

Colin: By way of introduction, I’m a Bank of Montreal (BMO) National Director within the corporate bank headquartered out of the First Canadian Place Tower in Toronto. My background extends across several primary banking pillars inclusive of investment banking, sell side equity research, strategic planning, corporate finance (M&A) and large corp. debt lending. Most pertinent to this discussion, I also helped spearhead the broker loan and investment portfolio for a major Canadian P&C insurance carrier for over 4 years.

I represent the bank’s primary insurance specialist, having closed numerous deals in the Property & Casualty space over the past six years. I work closely with our National Industry Programs Team to set direction and provide value-added product offerings for brokers that support each stage of the brokerage lifecycle. I’ve been with BMO for close to 2 years.

Given my expansive network in the insurance space, my contact base is national in scope. From an academic perspective, I completed the McGill MBA program and have earned my Chartered Financial Analyst (CFA) designation – both of which delve extensively into valuation methodologies.

Eric: I started my career in the Small Business Advisory Group at Ernst & Young in 1980 and continued in this practice area from 1988 to present as a founder of Cookson Walker, now CW Partners. I have a number of designations including my Chartered Professional Accountant (CPA), Chartered Business Valuator (CBV), Corporate Finance (CF) and Certified Fraud Examiner (CFE). Since the 1980s I’ve provided financial consulting services including business valuations and divestiture advice to insurance brokers across Canada. CW Partners has advised brokers in over 40 transactions over the past three years.

 

WHY IS IT IMPORTANT FOR BROKERS TO HEAR YOUR BIP TALK?

Colin: The merits of the presentation entail an open dialogue around valuation from the optics of both the buyer and seller. We’ll delve into concepts to get your brokerage “sale-ready” along with raising certain pitfalls for buyers.

Eric: For most insurance brokers, their brokerage is the most significant asset to their overall net worth. Understanding what makes this asset valuable is crucial.

 

IS THERE A SENSE OF URGENCY BEHIND YOUR MESSAGE? IF YES, WHY?

Colin: The consolidation tsunami industry-wide is not likely to cease anytime soon. With multiples more heated than ever and transactions being undertaken at new precedent price ranges, brokers need to be equipped with a proper methodology to transact.

Eric: I think the topic of brokerage valuation is always interesting as this sector has always been active. What gives the subject a little more urgency now are historically high prices, and the fact the baby boomer generation has now reached the ages of 50 to 69 years old.

 

We look forward to hearing more October 25th in Ottawa. Register for Convention prior to September 22nd to take advantage of early bird pricing.

 

 


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