Pat Gallagher says firm is attractive business for broking bosses looking to sell up
Gallagher chief executive Pat Gallagher says his firm’s M&A pipeline is ‘very full’ and an attractive home for brokers looking to sell up.
Pat Gallagher told analysts in a third quarter results conference call that in the first nine months of the year, Gallagher has completed 27 ’tuck in’ acquisitions.
He said the weighted average multiple - referring to the price as a ratio of earnings - was ‘about eight times’.
Looking forward, he said: ”Our pipeline of potential merger partners is very full and looking at our internal merger and acquisitions report, I see over $250m of revenues associated with around 50 term sheets either agreed upon or being agreed upon.
“Not all of the acquisitions will close, but I feel good about our ability to continue attracting our typical small tuck-in acquisition partners at fair prices will value our capabilities and know we can be better together.”
In a further upbeat note, Gallagher said that the UK and Bermuda had a ‘positive’ showing on organic growth, notching up an impressive 5% in the third quarter.
Finally, he lavished praise on staff for coping with the catastrophes so well.
”I’m really proud of how our professionals have handled our customer situations and in some cases even while dealing with their own losses and unfortunate circumstances at the same time,” he said.