A recent IBAO panel discussion explored buying and selling a brokerage from four unique perspectives.

The panel featured Ryan Craig, Producer & Manager, CMR Insurance; John Belyea, COO, NFP Canada; Mike Berris, Partner, Smythe LLP; and Steve Borlak, Business Lawyer, Borlak Law and was moderated by IBAO CEO Colin Simpson.

John shared insights from the sale of his former brokerage McLean Hallmark to NFP.

“Fit was critical in determining who we would be partnering with. The fit was good culturally, institutionally and strategically. You want to do business with people you like and people you trust.”

Ryan walked us through his experience acquiring a brokerage from an owner who wasn’t yet retirement age but was looking to set up a succession plan. Doing the deal this way allowed them to negotiate mutually beneficial terms, keeping the owner on for a flexible-length term. “I believe that if the seller wants to stay on, there are even more options to be creative and craft a deal that’s win-win for both parties.”

As an accountant focused on P&C consulting, Mike has overseen the sale of many brokerages. “Preparation is key. In the perfect scenario, you would start your preparation for sale at least one year prior to launching the sale. Preliminary tax planning is critical.”

Steve provides M&A-related legal services and despite a lull during the beginning of the pandemic, he’s seen M&A activity resume at its previous level. “The insurance industry has stood out as being immune from virtually any upheaval. I’m seeing multiples that are fairly consistent with pre-Covid rules of thumb. I haven’t seen a softening on pricing.”

Each of these speakers shared valuable advice and insight from their own perspectives—if you missed out on attending this webinar and want to hear more, it’s available on-demand in our eLearning library.