The Ontario Broker - June 2019 - 36

Here are three data trends that sparked the most joy for me:
ONTARIO BROKERAGE ACQUIRERS
JAN. 1, 2018 - MARCH 2019

1. THERE ARE MANY PLAYERS IN THE M&A
GAME

(DATA IS BASED ON NUMBER OF TRANSACTIONS REPORTED
TO IBAO BY IBAO MEMBERS)

You won't find it hard to believe that brokerage consolidation
activity increases with each passing year. Plotting the number
of broker transactions using information extracted from the
IBAO database shows an exponential growth curve-the
number of transactions increasing rapidly year over year.
2018 was no different-our largest number of transactions
were recorded last year.

HUB

8%
MCDOUGALL
INSURANCE

You might find it harder to believe that the number of
acquirers in the game is vast. IBAO has tracked 33 different
brokerage acquirers between the dates of Jan 1 2018 and
March 31 2019.

8%

Canada Brokerlink was the purchaser with the most
transactions in 2018/2019, followed by HUB and
McDougall, however these three big players account for only
30% of the transactions in Ontario. This means that 70% of
the merger or acquisition transactions were made through
other formed partnerships. Our data at the IBAO shows
that most brokerage transactions are made between two
independent brokers, debunking popular held assumptions
that purchasers are limited to a select few.

"In my opinion, as one has already accepted that the status
quo isn't going to continue, the overall decision should be
made on the biggest factor of all. That is where do you want
to be? Are you retiring soon and just looking for the most
attractive merger/sell scenario from a financial point of view
or are you still looking to work and want an environment
that is supportive of that. Frankly, as the President of my
own company I gave up a few things but in the end I gained
more than I lost and have no regrets. I have been heartily
welcomed into the Merit family. Life is about choices and
when someone is facing a big one, I feel that it's better to be
attracted to a new situation as opposed to being discouraged
by an old one."

"Cockburn and Sons Insurance Brokers decided to merge
with Merit Insurance Brokers because of how well the fit
was - taking into account the people, the similar companies,
the office location and the actual transaction itself. I had
other options but considering all of the various pluses and
minuses the choice to partner with Merit was obvious," says
Ian Cockburn, formally the President of Cockburn and Sons
Insurance, now merged with Merit Insurance.

JUNE 2019

CBL

15%

36

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The Ontario Broker - June 2019

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