Summary
Gallagher is now the fifth largest in the UK in terms of brokerage, marking a distinct change in the industry hierarchy. The group has attained much of its success from the businesses it has bought and has been able to access a new variety of products and markets. Having made significant investments in the UK and the Southern hemisphere, Gallagher has become a major force in commercial insurance.
Key Findings
- Understand Gallaghers recent acquisitions and the rationale behind them.
- Learn about how Gallaghers recent acquisitions are helping to drive the business up the global brokerage rankings.
- Analyze the potential issues associated with an aggressive MandA strategy and look at how Gallagher is combating them.
- Assess Gallaghers future prospects.
Reasons To Buy
Who has Arthur J. Gallagher bought and why?
How are these acquisitions helping to drive growth?
What changes is Gallagher making to maximize the benefit of its acquisition spree?
What might the future hold for the company?
OVERVIEW
Catalyst
Summary
AGGRESSIVE ACQUISITION STRATEGY DRIVES GROWTH
The firm is now a market-leading broker in terms of growth
Acquisitions have helped the firm progress up the broker rankings into the top five
Gallaghers first acquisition transformed the firm into a top 10 broker
Barbons commercial property interests enticed Gallagher into another acquisition
Independent broker Giles marked the companys third major purchase
The acquisition of Wesfarmers saw Gallagher venture into the Southern hemisphere
Gallagher cemented its position as a major broker with the acquisition of The Oval Group
STRATEGY and MANAGEMENT CHANGES MAXIMIZE ACQUISITION BENEFITS
A select few brokers dominate the market as Gallagher joins the ranks
Gallagher intends to become a global force within insurance broking
Changes at the top have seen Gallagher realign its business objectives and priorities
STRONG PROSPECTS BUT CHALLNEGES REMAIN
Rationalizing a wide geographic coverage and ensuring quality of service is maintained
Corporate and customer relationships must be serviced and maintained
The aligning of all administrative features is also vital to the success of the acquisitions
Sharing product expertise will provide benefits to other corporate clients
Gallagher must direct its efforts towards business integration
Acquisitions are seemingly the only way for brokers to significantly grow revenues
More spending is an option once the new purchases have been integrated
CONCLUSIONS
Successful integration crucial, if achieved may lead to more acquisitions
APPENDIX
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