High price means chances of an interloper scuppering deal is low, says RBC
Marsh paid 26.6 times JLT estimated earnings for 2019, according to analysts at RBC.
The high figure has been seen as justification for private equity to continue investing in UK brokers, as they can sell the firms on for a higher price into a rising market.
The figure smashes Marsh’s previous record on UK broking, having paid between 14x and 15x for Jelf and Bluefin.
“With a relatively high multiple for JLT, we see the potential for any interloper being low, and with the support of both JMH and management we expect that this deal will go through with few difficulties,” RBC said.
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