Marketing an Agency for a Transaction

Here is a question that we often get asked: how do you market a company? While the answer invariably is “it depends” – we’re outlining below some of the general steps that we take.

One note: it’s a generally accepted principal that a deliberate approach resulting in an offer received through a bid process is likely to be 20% higher than an “unsolicited offer.” Why would that be? Likely because of all the legwork that goes on behind the scenes to turn over all the rocks and find the best transaction partner.

Nonetheless, here is the general process:Identify Seller's priorities, requirements, and intentions (not just financial metrics, but ideal status post closing)

• Collect company data (financials, reports, associated data)
• Compile database of strategic partners / buyers. Using our own proprietary database and other research methods, develop a deep list of potential transaction partners.
• Compile database of financial partners / buyers. While these buyers are less common in the lower end of the insurance market, we still look at Private Equity groups that have platform placements in the industry that might be buyer candidates.
• Develop a “blind” Tear Sheet that highlights the basic facts about your company – without revealing identifying information. Mail to our prospect list.
• Identify “High Priority” targets from our lists. Each high priority target is called and we review the opportunity. We often identify other candidates through this networking process – even if the target is not interested.
• Follow up with all interested parties and work through the deal pipeline, to include: execute Confidentiality Agreement, detailed review with target, “Buyer-Seller” conference call, and schedule on-site meeting.
• Solicit offers. Ideally we want to either have multiple offers, or in some cases a qualified buyer(s) “in the wings” in case a deal does not proceed as planned.
• With an executed offer in hand, coordinate and schedule all maters up to the closing. Our goal is to keep all parties moving “towards the finish line.”

 

Deals, of course, are never cookie cutter and the "go to market" strategy always needs to be tailored to fit each situation. A "shot gun" or formulaic approach is rarely going to drive top value in a deal.