Mike Sullivan Analyzes Insurance Industry Consolidation Following Northwestern Benefit Acquisition

On Wednesday, April 3, OneDigital announced the largest acquisition in the company’s history, making quite a splash in the Atlanta market.

Last year alone, OneDigital completed a total of 28 acquisitions and since the start of 2019, the company has closed five deals and reports ten in the pipeline. The increased activity reflects a widespread trend of consolidation in the industry and M&A activity reached an all-time high last year with a reported 626 deals closed overall. OneDigital’s Chief Growth Officer Mike Sullivan talks to Employee Benefit Adviser regarding the increase in M&A activity, saying it's not all that surprising considering the relatively simple nature of the business and expected financial outcome. He delves deeper into the shift in the article, “OneDigital completes Largest Acquisition in Company History.”

You have a relatively fragmented space, lots of smaller agencies that compete in local markets where more significant entities like us are trying to localize our business. With so much M&A, there could be a clash between two brokerages when transactions occur if owners don’t spend enough time assessing company culture. When you are working through an intermediary, like a banker, to source a deal, it can be difficult to get a feel for the atmosphere at a company. I don’t think agency owners spend enough time on the process and what the best way to find the right home for them. It’s something I kind of wish they knew more about.
 
— Mike Sullivan, Chief Growth Officer, OneDigital

Learn more about the recent acquisition and changing industry by viewing the full Employee Benefit Adviser article, or the piece published in the Atlanta Business Chronicle.