Sample Page Title

As one of many high nationwide insurance coverage brokerages, Leavitt Group has been steadily constructing its enterprise by focused acquisitions and natural development, increasing its nationwide footprint whereas retaining a detailed eye on its core values.

The Utah-based agency is gearing up for extra mergers and acquisitions within the Midwest, the newest of which was Elliott Insurance coverage Group in North Carolina.

 On the similar time, Leavitt Group plans to develop its footprint within the monetary providers sector and its worker advantages division, which at present makes up 25% of its income.

“We very a lot wish to develop by way of acquisition, in addition to organically,” stated Kevin Callister, (pictured) chief affiliations officer at Leavitt Group.

What’s behind Leavitt Group’s “spoke and platform” acquisition mannequin?

Chatting with Insurance coverage Enterprise, Callister make clear the corporate’s acquisition technique and development plans, revealing a methodical and long-term strategy.

“About three years in the past, we fastidiously focused many Nationwide businesses. Nationwide, as a service, was shifting these businesses into the unbiased market, they usually wanted help,” he stated.

“As an unbiased dealer, we strategically pursued businesses that aligned with our tradition, buying a number of platform-style businesses that would function independently inside our useful resource platform. After these acquisitions, we started buying smaller businesses—spokes—that would combine into these platforms and develop profitably.”

The acquisition of Elliott Insurance coverage Group is a key instance of this technique in motion. Elliott was added as a “spoke” company, attaching to an current platform company in North Carolina.

Callister emphasised that Leavitt Group’s development technique isn’t just about financials or geographic enlargement – it’s about making certain cultural alignment with the businesses they purchase. “If there isn’t any tradition similarity, if we will not get alongside from that perspective, there isn’t any cause to do a deal,” he stated.

The group is actively looking for alternatives to accumulate each platform and spoke businesses on this area over the following two to 3 years, whereas its current strongholds alongside the Jap Seaboard additionally stay an space of focus.

Geography, nonetheless, is just one consider Leavitt Group’s M&A strategy. In line with Callister, the group evaluates potential companions primarily based on the company’s enterprise mannequin and talent to contribute to the group’s broader objectives.

Every platform company operates as a separate C company, with Leavitt Group proudly owning 60-75% of the enterprise and the remaining portion owned by native companions. This mannequin permits the group to take care of native experience and relationships whereas offering centralized assist.

“This partnership permits us to carry our experience and back-end assist whereas they deal with relationships,” Callister stated.

Leavitt Group’s subsequent objectives: Diversifying and hitting a income goal

Leavitt Group has additionally made a gradual tempo of acquisition regardless of “market turmoil” in recent times pushed by rising rates of interest. In contrast to non-public fairness corporations, nonetheless, Leavitt Group is privately owned, which supplies them extra flexibility in navigating the market.

Callister highlighted that the group has been pursuing this mannequin for many years, with the primary partnership company established again in 1959.

“Since Vicky Levitt opened the doorways in 1952 and our first partnership in 1959, insurance coverage has been core to us,” he stated. “We’re bullish on the trade and assured it is going to thrive in its relationship-driven format.”

By way of diversifying its enterprise traces, Callister stated: “You’ll see us construct out our worker advantages facet of the home,” noting acquisitions on this house are prone to play a key function in that development.

Monetary providers, together with 401(ok) and wealth administration providers, are additionally on the radar, however Callister stated this space requires a extra cautious strategy because of the regulatory complexities concerned.

“We simply hit $500 million in income, and our purpose is to double that within the subsequent 5 years, with acquisitions taking part in an enormous function. We goal for balanced development, focusing on 50% by acquisitions and 50% organically,” he stated.

As Leavitt Group continues to develop, Callister stated that its success would rely on sustaining its deal with tradition and partnership.

“We imagine that we’re stewards to every of our 3,000 workers, to our vendor companions and all stakeholders,” he stated. “By way of his stewardship strategy, we’ve constructed a rising, worthwhile enterprise the place everybody advantages. This philosophy actually defines who we’re and the companions we search to align with. It’s the core of our tradition and our approach of doing enterprise.”

Do you could have one thing to say about this story? Please share your feedback under.