What is MVP?
Minority Venture Partners (MVP) is an innovative investment vehicle that provides funding for UK insurance brokers who wish to release capital from their business but stay in control.
How does a minority investment work?
MVP acts as an investment partner. We make an investment of 15-30% in the business and support the management team who continue to run, control and grow their own business.
How is the business valued?
We use a tried and tested valuation model based on broking income.
How long does the process take?
Only basic information is required to enable MVP to provide a non-complex valuation early in the process, often within 2-3 weeks of the initial meeting.
What sort of brokers does MVP invest in?
Regional brokers that are predominantly commercial are ideally suited to MVP but our model is flexible. Two case studies illustrate the value MVP can add to a business:
Case Study 1
Green Insurance Group is a successful commercial and personal insurance broker with 6 offices in the South of England, including the head office in Bexhill. Established in 1973, the management team includes Clive Galbraith, Chairman and Duncan Coleman, Managing Director. The business employs 80 staff and has its own unique wordings for property, commercial combined, shops, offices, motor trade and professional indemnity.
In 2013, Greens decided they wanted to grow their business by making further local acquisitions and they also wanted to release some of the capital from their business for personal use. But they wanted to stay in control and didn’t want to set a future date for a sale at that point.
Minority Venture Partners provided an ideal solution as it enabled Clive and Duncan to achieve both aims. With MVP’s acquisition expertise, Greens have since acquired 7 further brokers and took some money out of the business to enjoy.
The central support provided by MVP on Acquisitions, Finance, Marketing and Compliance was a great help in developing their business. Brokers often can’t justify full time staff in these areas so being able to tap into MVP‘s expertise when needed was a big advantage.
The MVP model appealed because as Clive Galbraith said “ It’s great paddling your own canoe but it’s even better to have a brand new engine on the back!”
Since then, Greens have continued to successfully grow their business and in June 2017, Global Risk Partners Limited (GRP) acquired a majority stake in the business, a vote of confidence in their business strategy.
Case Study 2
In October 2014, MVP invested in The County Group, a large, successful broker based in Cheshire. During the 3 years County has worked with MVP, they have completed 9 acquisitions and grown their GWP from £29m to approaching £90m. County won Insurance Broker of the Year at the British Insurance Awards in 2017.
In January 2018, County Group also decided to sell a majority stake in their business to GRP to fund further acquisition and growth. Dave Clapp, CEO of County is delighted with how the business has developed with MVP’s support: “Having worked closely with Peter Cullum, Chairman of MVP, for the past three years, I am confident that County will continue to deliver the same level of successful growth at GRP. The investment by GRP is testament to our successful model and our people who are committed to delivering excellent service.”
Peter Cullum, CBE, Chairman of MVP said: County have been a great success story at MVP and a considerable increase in enterprise value has been achieved during this period. I am delighted that their hard work and success has been recognised by the insurance industry and that they have chosen GRP to help support them as they plan the next stage of their exciting development”
Can the money be used for any purpose?
Yes, for example, buying out shareholders who wish to retire, funding local acquisitions or paying off a mortgage.
How does MVP enable me to recreate the same level of earnings within 3 years as we had before we sold the minority stake?
The MVP team are insurance experts who will help create further value in the business and support growth ambitions. MVP work with a panel of well known insurers and brokers use the panel to help increase their profit margins. We also help brokers arrange new facilities and unique products.
What ongoing support does MVP provide?
– Access to a team with unique insurance expertise and market connectivity who act as Non – Executive Directors for your business.
– Insurer relationships with margin uplift and best of breed exclusive products.
– Sales & Marketing, including email campaigns to help generate new business enquiries, access to digital marketing expertise and help with new product development.
– Finance help with MI templates, refinancing of loans, client money control and reconciliations, year end audits and financial analysis.
– Support and guidance on local acquisitions.
– Independent compliance support.
– Access to quality products with product benefit analysis to show that meeting customers’ needs and fair outcomes are integral to our product selection process.
What level of day to day involvement does MVP have?
We do not become involved in the day to day running of the business. We offer support, connectivity and access to expert resources to help the business grow. For example, helping brokers who want to make a local acquisitions with due diligence and valuations.
Will MVP buy 100% of a business?
No, the MVP model is for minority investments only. If at a future date you want to sell the whole business we can help you with the process to ensure you maximise the value of your business.