But CEO Bob Darling notes the company is not stepping away from the franchise model and reveals founder Mark Coverdale will retire when the deal goes through.
Coversure Insurance Services Group is set to make acquisitions following its management buyout, CEO Bob Darling has confirmed.
The MBO was backed by private equity firm Livingbridge and included the broker franchise, online wholesaler Policyfast, specialist underwriters CUL and software house Datamatters.
“Livingbridge has a good reputation for growing businesses and we’re really excited to have them as partner to take the business to the next level,” Darling told Insurance Age.
Acquisitions
He explained that the company will be more acquisitive with support from the private equity house, but declined to give any details on any deals in the pipeline.
In a profile interview with Insurance Age in 2017, Darling stated that Coversure franchise holders were encouraged to make acquisitions and merge with other brokers in their local areas.
Following the news of the MBO, he added: “Livingbridge is a good investment partner that will help us achieve this.”
Franchise model
However, the CEO observed that the business would not be stepping away from opening new franchise offices.
“There are still towns out there where we’re not represented which we can bring value to,” he noted, adding: “But our key focus is on growing the ones that we’ve already got.”
When asked if the group as a whole would be making acquisitions, Darling said: “It depends on what the opportunities are.”
Commenting on the MBO, he concluded: “We’ve got a good partner in Livingbridge. The guys that will be joining our board will bring a different level to the company.
“They really know how to grow a business and they have unbelievable experience.”
The deal will be completed later this year. At that point Coversure founder Mark Coverdale, along with fellow shareholder directors including John Hooper and Kevin Sinclair will retire from the business.
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