Ryan Specialty can keep its M&A pace on ‘fantastic’ revenue synergies

Ryan Specialty need not be scared off from the M&A market where valuations for top-notch targets defy the rise in market interest rates if the match-up shows that revenue synergies cane bridge the valuation gap, top company officials have claimed.

Founder and CEO Pat Ryan admits to having paid “the top end of the market multiple” to date, but can sign off on deals wherevethe revenue synergies are so fantastic.”

We’ve known they had the horsepower, the manpower, the person-power to lift their game,” Ryan said or targets ready but unequipped to hit big-league earnings leverage. “That is how we are coping with these market changes.”

Ryan Specialty continues to vow that all M&A will be earnings accretive, CFO Jeremiah Bickham insists. “The bar for that check mark has certainly been raised, but it is absolutely doable.”

“We are incredibly excited about the opportunities we have ahead of us right now.”

Ryan Specialty is looking chiefly at the priciest firms where bidding remains tight. What’s more, those are chiefly privately held firms where prices are more resistant to the market factors that can hit listed companies, including the recent spike in interest rates.

“There is still so much capital out shaping these properties; we think that competition has really buoyed valuations, especially for the cream of the crop companies that we are interested in,” CFO Bickham said.

“Those are always going to come at a premium and we haven't seen that premium dissipate despite the volatility in public markets.”

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