“This is not to say there will not be challenges as market conditions change, technology is introduced and customer expectations evolve,” says Berris, “Are we at the top of a bull market? I say yes. Will prices decline? We will have to wait and see.”
In so far as how aggregators will behave, it will truly depend on the strength of the mom and pop brokerage. So far so strong; but those looking to buy – and especially for those independents sitting on the fence debating on whether to sell now or wait another five or 10 years – the time to act may be now.
“It would be an understatement to say the demand for P&C brokerages has been strong over the past 10 years. It is my view that demand will remain robust,” says Berris, “but acquirers are going to start thinking very carefully about their expected return before entering into the bidding wars we have seen in the past.”