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. A good example is the first business MVP invested in:
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 have taken some money out of the business to enjoy.
The central support provided by MVP on Acquisitions, Finance, Marketing and Compliance has been 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 is 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.
In October 2014, MVP invested in The County Group, a large, successful broker based in Cheshire, who have since grown their GWP from £29m to £75m. County won Insurance Broker of the Year at the British Insurance Awards in 2017.
Dave Clapp, Chief Executive of The County Group, is delighted with its performance: “We have successfully completed 8 acquisitions in the last 3 years and have a strong pipeline of local businesses we are talking to. With MVP’s support we are on track to achieve our target of £100m GWP within the next 18 months.”
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.