Information and Resources

How Insurance Firms Can Leverage Investment Bank Expertise for Perpetuation Planning

Perpetuation planning is a crucial endeavor for insurance firms intent on ensuring their legacies. In this article, MidCap Advisors Vice President Chad Morgan explores the various transitions insurance firms must navigate to enable enterprise continuity such as financial maneuvers, strategic partnerships, and risk management strategies -- all challenges for which an investment banking firm can serve as a vital trusted advisor.

Patience is an Important Trait in Investment Banking

Before investment bankers can be dealmakers, they must be relationship-makers. They need to become trusted advisors to business owners, immersing in the business of a prospective client and offering advice, guidance and connections that may one day make the company an attractive acquisition target. In this article, MidCap’s Robert Goodman advises why patience emerges as a crucial trait for the investment banker who is willing to be a sounding board for entrepreneurial organizations that may have a business sale on their horizon.

Don’t Lose Your Leverage, Control the Sale of Your Business

When it comes to selling your business, you want to be sure you are prepared. A business exit should always be a well-strategized event, structured to help you get the highest return on all the time, energy, and money that you have poured into your business over the years. The process of selling your company needs to be intensively planned to ensure that the entire organization and all its internal and external stakeholders are aligned for sale with intentionally and strategically pre-determined terms. Having the luxury of time allows you to choose the ideal buyer out of multiple offers.

Determining the Right Time to Inform Employees of a Pending Sale

A crucial aspect of selling a business is determining the proper timing and strategy for informing employees about the impending sale. Maintaining confidentiality regarding the forthcoming sale, aligning leadership on timing and messaging to employees about the sale, and thoroughly addressing employee concerns while emphasizing the new opportunities of the merged company can build trust and morale. Here Managing Director Michael Fitzgerald advises how to get the steps right to ensure your company sale is received with enthusiasm by your employee team, easing the transition period for all parties.

Unlocking Success: The Importance of Key Performance Indicators (KPIs)

Key Performance Indicators (KPIs) are essential metrics that serve as a barometer of the effectiveness, competitiveness, and overall health of an enterprise. This article by Ryan Sanford provides a framework for establishing impactful KPIs that enhance an enterprise’s ability to achieve goals, elevate revenue, effectively allocate resources and uncover new avenues for growth and innovation – all of which optimize the value of a business for shareholders.

PE Buyout Funds and Lower Interest Rates

Rising interest rates over the last couple of years have caused many private equity firms to scale back their M&A activity. MidCap’s Dax Cohan analyzes the lengthening buyout funds holding periods and notes that the end of rising interest rates may ignite accelerated M&A activity in the second half of 2024.

The Check List for a Successful Company Sale

Selling a business is perhaps the most substantial moment in the life of a business owner. Not only do business owners need to thoroughly evaluate if and when to sell, maintain a pulse on the current market value of their companies, perform due diligence on an offer to ensure an ideal fit, but they must also navigate the emotional aspect of selling a business -- often after years, even decades of hard work, where the business was central to everyday life and relationships. Owners need to ensure they are not only financially ready to sell, but also emotionally ready for the inevitable changes that accompany life after a sale. Here MidCap Managing Director Michael Fitzgerald offers a checklist for realizing a successful sale, both financially and emotionally.

Avoiding the EBITDA Multiple Bait and Switch

MidCap’s Brandon Bisack has written on a brief white paper, “Avoiding the EBITDA Bait and Switch,” explaining the crucial differences between transactional and accounting/reported EBITDA (earnings before interest, taxes, depreciation and amortization). Using transactional EBITDA multiples to arrive at the valuation of a business can yield a starkly different number from using accounting/reported EBITDA to calculate valuation. As this paper demonstrates, enhancing transactional EBITDA is the path to arriving at an optimized valuation. 

Industry Analysis

Download our latest analysis on The Impact of Interest Rates and Capital Gains Tax on Net Proceeds for Insurance Agency Owners.

Insurance Transaction Spotlight

Find out how the MidCap team found hidden value and helped agency owners achieve outstanding returns in these unique transactions.

Tools and Tips to Maximize Value

Learn about MidCap’s Transaction Roadmap – how we work with our clients at all phases of the process, and why the most important step could be the one you take now, even if a potential sale is in the distant future.

COVID-19 Resources

Undoubtedly, COVID-19 has changed many aspects of our daily lives, but has it changed the value of your business? Find out how MidCap helps clients evaluate the risks and
opportunities in these uncertain times.

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