USI Insurance Services
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Some will play “pretend and extend”, but others will sell to strategics or take the steep climb to an IPO. -
Lockton EVP Matthew Simmons was ordered to pay $1.9mn of the total award.
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Challenges include integration, delevering, winning staff over and building a compelling equity story.
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A “return to minimal valuation increases can be expected soon”, the broker wrote in its 2024 P&C market outlook report.
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With the deal, KKR purchased over half of USI shares held by Canadian investment firm CDPQ in addition to stock from other investors.
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The three former USI employees were held liable for breach of contract after violating non-solicitation clauses.
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Increased cost of capital is cooling tuck-in M&A, encouraging a pivot to organic growth and forcing greater creativity around financing.
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The cases were filed in California and Florida courts, states where non-competes are currently treated differently, and followed the FTC’s move to ban them.
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The proposed change could disrupt M&A at brokers, shift the calculus in favor of team lifts and dial up C-suite focus on becoming an employer of choice.
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A tougher environment for debt financing and a potential recession will reverse some of the remarkable tailwinds of recent years.
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The report, which covers a range of lines of business, also notes that D&O is continuing to trend towards a buyer’s market.
Related
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USI buys Washington-based insurance brokerage Griffin MacLean
November 15, 2021 -
USI to expand Iowa presence with Reynolds & Reynolds acquisition
September 07, 2021 -
Parametric market begins to scale up
April 20, 2021