CCIG, an Englewood, Colorado-based insurance brokerage, could buy as many as five agencies through 2024 to add talent and geographical reach, said Spencer Mahoney, chief growth officer.
The firm is actively looking for brokerages in high-growth cities with USD 2m-USD 10m in annual revenue, Mahoney said. CCIG prefers strong sales and in-depth relationships in metro areas where business is strong in CCIG’s insurance specialties, which includes construction, manufacturing, real estate development, healthcare and technology, he said.
Talent is one of the company’s top criteria for potential buys, with a focus on first-rate sellers who can grow under the CCIG brand, Mahoney said.
“Geography is important, but it’s mainly about people,” he said. The company’s clientele is nationwide and in China, the UK and South America. It emphasizes high-quality service with a boutique touch, the executive said.
CCIG is also willing to add coverage verticals through M&A that could add to the more than 20 it already services, Mahoney said.
CCIG has doubled its annual revenue since 2018 to nearly USD 25m, and it expects to double again by 2027, Mahoney said. The agency grew its top line almost 20% in 2022 and is expecting to top that growth rate in 2023, he said.
The brokerage recently purchased Austin, Texas-based Cairn Advisors, whose 20 years of experience in employee benefits will help CCIG grow in that coverage vertical, he said.
Mahoney’s father, CEO Brook Mahoney, founded the company in 1985 with a property & casualty focus that has grown more aggressively during the last decade in employee benefits, Spencer Mahoney said.
CCIG has purchased about 20 agencies since that time, including two during the past couple of years, he said. The brokerage narrowed those two buys down from about 20, the executive said. The firm does most of its own due diligence but received help for those from MarshBerry and Reagan Consulting, according to Mahoney.
The agency has not signed any letters of intent (LoIs) with potential targets but could close several more deals in 2023, he said.
Companies have been priced at 2x-3x revenue, he said.
The firm is family owned and is not interested in equity partners or in selling, the executive said. CCIG funds acquisitions on its balance sheet and with debt from commercial banker First Western Trust, Mahoney said.
Private equity and strategic players have approached for buyout, but CCIG plans to be independent “for a very long time,” he said. He and his brother, President Andrew Mahoney, recently transitioned into leadership positions.
CCIG has about 100 employees.
Hall & Evans provides legal services, and Plante Moran provides accounting.