mike-pesch-ceo-gallagher-us-brokerage-services-1
17 March 2022Insurance

Gallagher pads M&A pipeline; 40 targets now in crosshairs

Global insurance broker  Arthur J Gallagher has padded its M&A pipeline with additional potential targets over the past weeks for a war chest it believes can stretch to the end of 2023.

Gallagher now has term sheets signed or in preparation for around 40 firms, up from a reported 35 at end-January, chief executive officer Patrick Gallagher told an investor call. The stable of targets represents some $200 million in annual revenues.

"Not all will close, but we believe we will get our fair share," Gallagher said to reiterate his long-running mantra.

The brokerage services arm at Gallagher has already patched together several deals to date in 2022. "We have agreed terms with a handful and have a really nice pipeline of opportunities," the CEO of Gallagher's US Brokerage Services, Mike Pesch (pictured), added.

The group prefers smaller tuck-in additions of local brokerages with annual revenues in a range up to $10 million, officials reminded.

Gallagher continues to believe it has the cash capacity to pay for $4 billion in acquisitions to end-2023 without reaching for new equity, chief financial officer Doug Howell reiterated.

"We still believe we can do more than $4 billion in M&A through the end of 2023 without using any stock," Howell said.

Did you get value from this story?  Sign up to our free daily newsletters and get stories like this sent straight to your inbox.

Already registered?

Login to your account

To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.

Two Weeks Free Trial

For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk


More on this story

Insurance
6 April 2022   The firm specialises in claims arising from corporate and personal travel.
Insurance
30 March 2022   Casualty remains jittery to nuclear verdicts; cyber remains ‘deeply distressed’.
Insurance
24 March 2022   The insurer offers coverages for businesses and individuals with complex, unique or hard-to-place risks.