The third episode of a five-part series on value maximization for delegated authority and wholesale broker firms. Understanding what drives value is essential, whether a firm wants to stay independent or sell externally. The value of a firm is influenced by many factors. However, there are typically a select few that will most significantly influence a firm’s value. This episode covers how management and leadership directly influence a firm’s culture and how buyers recognize the impact culture has on value.
To The Point: A MarshBerry Video Series
Value Maximization Series: Management & Leadership
November 15, 2024
Video Transcription
Hello, I’m George Bucur, managing director and co-head of MarshBerry specialty practice. Serving specialty distributors such as MGAs (managing general agent), MGUs (managing general underwriter), wholesale brokers and program managers, we’re here today to continue the conversation around value maximization and what owners can do to maximize the value of their organization.
As we’ve talked about previously there are hundreds of factors that go in to and may influence the value of an organization. Often times we’re asked, what are those top factors that we can influence? So what MarshBerry has done is we put together our list of top five, and today we focus on number three: management’s capabilities and leadership. Why is that so important? Well at the end of the day, the primary assets of any insurance distributor go in and out of their doors every day. That’s right, they’re people, and why are people so important? Well, they’re so important because insurance is a relationship-based game; people like doing business with people. That’s one reason why the InsurTech revolution, well, really wasn’t a revolution at all, it was more of a bust, generally speaking. People are critical to how insurance gets done in the marketplace, and we’ve all heard the saying that the tone of the top sets the overall expectations and drives the culture throughout the rest of the organization. That applies to integrity, ethics, and other aspects that are so important to dealing with other people. When it comes to valuation, leadership and their capabilities will continue to influence in a very meaningful way. We’ve seen this industry make it through some very hard times in an amazingly resilient form. Top leaders have been there and done that and will continue to weather those storms with their carrier partners, with their vendors, and their distribution clients.
If you have questions around what you can do to influence your valuation or specifically how these five factors may apply to you, we encourage you to reach out. Until next time, be well.
MarshBerry is a global leader in investment banking and consulting services, specializing in the insurance brokerage and wealth management sectors. If your firm seeks expert advisory guidance to refine your business strategies, drive sustainable growth, or facilitate a sale, MarshBerry is the ideal partner to support you in making these critical business decisions. Collaborating with a trusted advisor who deeply understands your business and the industry can help you maximize value at every stage of ownership.
