2017 Best Practices Study

492

457

364

360

311

303

271

245

244

237

200

125

124

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Q1 16

Q1 17

Source: SNL Financial

The rise in acquisition activity has accompanied the rise of private equity. With 256 transactions completed in 2016, PE- backed brokers remain the most active group of acquirers in the industry, a distinction they have held since 2012. Since 2015, roughly half of all deals in the industry have been done with PE-backed buyers. Part of this trend is the sheer number of well-capitalized buyers. The advent of private-equity capital has created a field of qualified buyers that is much larger than the industry has seen in the past. Of the 14 most active acquirers, five did not exist 10 years ago and several others existed but were not significant acquirers prior to taking private equity capital. The chart below highlights the magnitude of the shift in buying groups. In 2006, banks (30%) and public brokers (26%) were the leading acquirers, while private equity (4%) was barely a factor. Ten years later in 2016, PE-backed brokers acquired more than three times as many agencies as bank buyers did in 2006 at the zenith of their power as an industry acquirer.

6% 8% 5%

9%

10%

14%

30% 25% 20% 14% 13%

13% 15% 9% 9%

10%

17% 17% 15% 20%

10% 14%

10%

24%

21%

15% 16% 13%

26%

26%

28%

26% 28% 24%

22%

32% 29% 28%

21%

21%

28%

55%

20%

42% 41% 46%

16%

30%

20%

23% 27%

12% 14% 15%

4%

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Private Equity Privately-held Brokers

Other

Public Brokers

Banks

Source: SNL Financial