MarshBerry — M&A Valuations

MarshBerry has issued a report on mergers and acquisitions. The company found the value continued to rise through 2023. This in spite of shaky economic conditions and inflation.

The average total purchase price for earnout for all companies rose 7.8% from 2022 to 2023. The potential earnings is up 14.85 times before interest, taxes, depreciation and amortization. That compares to 13.78 times in 2022.

Platform deals traded at 18.68 times earnings before interest, taxes, depreciation and amortization. That’s up 14.3% from the 16.35 in 2022.

“Despite this nearly two-year stretch of less-than-optimal economic conditions — valuations for average insurance brokers and platform firms are at all-time highs,” the report said.

Deals were down to 10.6% between 2022 and 2023 but the count still sat at a very high 807.

Source link: Business Insurance —

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