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IMAS in the news: Poor GI results could see Capita sell broker businesses at knock-down price

Post Magazine, 12 September 2013

Commenting on Capita’s decision to dispose of the majority of its insurance distribution business, IMAS managing partner Olly Laughton-Scott told Post: “Capita principally operates as a business-to-business firm and the companies it is disposing of are business-to-customer. That market has undergone a revolution over the past five years with the internet and aggregators so it comes as no surprise that Capita has struggled to keep up.

“There are a number of potential suitors but we don’t think they will pay a premium price because they’re just buying customer base.”

A private equity deal, like the one unveiled by broker Sabre this week, is one possible option but many believe the firm would struggle to get private equity backing.

Laughton-Scott added: “It will be hard for PE to go hard because it’s not clear they’ve got the management in place to drive change.”

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