Broker aims to dominate Manchester market
CBG is aiming to dominate the Manchester market following its 15th buy in the North West.
The broker has paid £1.45m for its Manchester counterpart Barclay Brown. CBG will make a further payment of £1.85m in cash and shares if it meets targets over a two-year period.
Barclay Brown, which reported profit before tax of £237,619 on turnover of £1.7m in the year to 30 September 2007, has a GWP of £12m. The deal pushes CBG close to £50m GWP.
The acquisition takes CBG’s total number of purchases to 16, with London-based Marcus Hearn & Co its only buy outside the North West.
Martin Lewis, technical director of CBG Group, said: “Acquiring in the region makes access to the client business for cross-selling opportunities a lot easier to manage than if we were spread out nationally.
“The fact that we have acquired has made people think that they need to do it as well. We are very aware of what is happening in the open market around us.”
Lewis said that although Barclay Brown has some niche products, he would not describe it as a niche broker.
“It is a traditional insurance broker focusing on the corporate side. They are a good fit for us because their core business is very alike to ours,” he said.