Question marks have been raised over how Arthur J IMAS managing partner Olly Laughton-Scott suggested the deal would substantially strengthen Gallagher’s position in the market, estimating it would see the US business leapfrog Towergate in aggregate turnover. He added that the deal may represent an uptick in broker M&A activity, with businesses benefiting from a recovering UK economy and more than 85% of brokers worth between £5m and £25m currently privately held.
“We have had a wider range of enquiries from buyers than ever before, including those from Asia and private equity houses looking for opportunities to enter the market,” Laughton-Scott explained.
“In the last month we have been talking to private equity houses over four specific transactions. We think [the Giles deal] will be seen as firing the starting gun for a new wave of consolidation.”