The Company is a leader in health care insurance brokerage space and the claims processing that accompanies these policies. They were a growing business which was growing faster each year, landing larger and larger business clients and doing so while maintaining margins and increasing profitability.
The owners looked at the marketplace and considered how significant industry consolidation may have an impact on their ability to remain relevant in negotiations with underwriters and other providers. They thought that being part of a larger entity would keep them on an even keel. Additionally, given the owner’s age and desire to retire in the near future, thought that they would like to sell at this time. While they considered that they might be a few years early, it would be better than being a few years late.
The owners were approach by the management of subsidiary entity of the insurance company to test the owner’s interest in selling. The owners asked Beacon to offer advice and help steer the process. By properly packaging the information for the prospective buyers we were able to demonstrate that the buyer’s initial offer was not sufficient and able to negotiate an all cash deal for nearly twice the initial offer. We then proceeded to guide the due diligence process and transfer the partner license which was a significant process requiring delicate handling.
Owner’s successfully sold their business for their desired price range in an all cash deal, accepted a two year employment role with the buyers to continue to run the division and kept the business in their current location. Everything they said they wanted.