Struggling smaller firms may be bought “on the cheap”
Advisen has claimed Aon and Marsh, the world’s two biggest brokers, will buy smaller rivals struggling in the recession, Bloomberg reports.
“Consolidation will continue at a brisk pace,” John Molka, an analyst with Advisen, said in a research report. “Rich acquisition targets for the largest brokers remain in abundance.”
“Strained revenue” is a problem for potential acquisition targets, said Molka. Slowing sales may provide “opportunities for large brokers to snap up these targeted companies on the cheap.”