Differentiation (Still) Matters
For the last several years, as the consolidation wave has washed over the insurance brokerage industry, the staggering number of deals and rising valuation multiples have been the headline grabbers.
Recently though, we’ve noticed a change in the tenor of the articles and marketing materials of the industry’s consultants and investment bankers. Take this article from our colleagues at Reagan Consulting for example: “Beyond the Money: What Motivates Sellers”
We’re enthusiastic about the new messaging: the focus is (back) on differentiation.
Recently, many in the industry have made acquisitions by ‘differentiating’ on price. To us, that’s not differentiation; that’s a commoditized auction. It’s not a cattle call: your decision to undertake a transaction is a part of your legacy.
For more than 15 years, we have focused on being the unique alternative for agency leaders looking to partially monetize their business while maintaining ownership in their agency. For each of our Core agency partners we’ve designed a customized co-ownership arrangement with the agency leadership team, and that co-ownership model creates alignment among BroadStreet and its partners.
Each of our Core agency leaders has a high degree of autonomy and we trust them to do what they do best: run high performing agencies. Our role is to help our Core partners accelerate their growth and build value for all agency owners.
Our Core partners have made over 350 fully integrated tuck-in acquisitions, supported by the deal expertise and capital access we provide to them. We also help to create revenue enhancement opportunities with carriers, and we negotiate with vendors to achieve scale-based cost savings.
We regularly bring our partners together to leverage best practices and create collaboration opportunities across a network of best-in-class risk management professionals. Our partners become better individually because they’re part of a larger group. Without sacrificing their autonomy, our partners are able to accomplish more together than they could on their own.
The reality is that by offering a high enough number, anyone can be a buyer. It’s different though, when you’re a partner.
Contact me to begin a conversation about joining BroadStreet; find out why it’s better when you’re a partner.