M&A Services for Financial Service Companies
Sica | Fletcher has been the top-performing M&A advisor for financial services companies since its founding in 2014. Our approach to M&A prioritizes:
- Ensuring that we are the right match for your company
- Finding the ideal buyer for your business
- Using our deep knowledge of financial services M&A to secure the best possible deal
Financial services businesses often make the mistake of assuming their expertise in asset management translates to selling their own company. However, the data shows that companies who are represented by a third party secure higher multiples and more favorable deal terms.
We partner with financial services companies to manage and oversee complex, sell-side deals, including:
- Private equity roll-ups
- Strategic acquisitions by large regional players
- Broad & limited auctions to PE firms and strategic buyers
- Targeted solicitations for strategic buyers
Financial Services Company Valuation Statistics
Average EBITDA Multiple by Financial Services Company Type, 2024
| Company Type | Multiple |
|---|---|
| Financial Advisor | 6.2x |
| Wealth/Asset Manager | 6.4x |
| Accounting | 6.8x |
| Commercial Insurance | 7.6x |
| Personal Insurance | 7.1x |
| Traditional Lender | 7.8x |
| Peer-to-Peer Lender | 8.5x |
| Credit Card Company | 8.8x |
| M&A Advisor | 8x |
| Real Estate Investment Fund | 9.1x |
| Investment Bank | 9.3x |
| Private Equity | 9x |
| Venture Capital | 9.5x |
| Hedge Fund | 10.5x |
The M&A Market for Financial Services Companies in 2024
With the recent economic downturn and hikes in federal interest rates through Q4 2023, the financial M&A market has looked uncertain for sellers. Whereas it used to be common for owners of financial service businesses to see more than a dozen bids for their company, they’re now seeing about half that number. However, 2024 is looking brighter with the prospect of the Fed lowering interest rates.
Another bit of good news is that valuations haven’t declined; it’s simply been harder to find an acquirer. The realities of today’s market simply imply the need for more experienced deal representation.
Financial services companies need a seasoned partner in their corner to find the right strategic partner and secure the optimal deal for them. Our team has learned to leverage fewer offers into a more streamlined deal process that capitalizes on buyer imperative to earn our clients a higher payout and more favorable deal structure.