M&A pause ‘the best decision we’ve made in a long time’
M&A pause ‘the best decision we’ve made in a long time’ | Insurance Business America
Insurance News
M&A pause ‘the best decision we’ve made in a long time’
Independent broker ready to take its next leap after focusing on foundational work
Insurance News
By
Gia Snape
The Liberty Company Insurance Brokers (Liberty) is gearing up to return to mergers and acquisitions (M&A) activity after pausing to focus on its internal operations.
CEO and founder Bill Johnson (pictured left) told Insurance Business that the brokerage took on a “different mentality” in 2023 to focus on foundational work.
“We paused M&A because we felt like we needed to focus on our infrastructure and our internal operations to set a solid foundation for the next wave of growth,” Johnson said.
“That’s not to say that we’ve not been continuing to grow at a very nice rate. But it has been exciting to do some of the foundational work we’ve done this year, whether it was making some adjustments to our leadership team or our processes and procedures, which has positioned us well to take our next leap.”
How did an M&A break help The Liberty Company grow?
Stopping new mergers and acquisitions was an intentional decision, according to Johnson, to devote more resources to Liberty’s top priority: to provide the best work experience in the industry.
“That’s our number-one goal,” he said. “We want to have the best work environment, and that has been foundational, along with the intentionality that we have around our culture. Those have been the foundational pieces that have driven our success over the last five years.”
Adam Baillie (pictured right), who was named chief operating officer last November, said the M&A pause also allowed the organization to focus on its new members.
“We tripled in size between 2022 and 2023. We had hundreds of new people join the organization, and for a company to continue to grow successfully, you must allow those new people to understand the culture they’re now part of and their role as part of the overall vision of the company,” Baillie said.
One of the fastest-growing independent insurance brokers in the US, Liberty is now eyeing strong growth and innovation in 2024. It targeted around $180 million in revenue in 2023.
Based in Gainesville, Florida, Liberty boasts over 800 employees across 16 states in the US and two international service centers in India and Costa Rica.
“The fact that we did it deliberately was a good decision because it can be very easy to keep the momentum going and get addicted to those numbers and that consistent growth,” Baillie said. “I think it speaks to how we manage and lead as a company, that we can throw on the brakes because it’s in the organization’s best interest. It ended up being one of the best decisions we’ve made in a long time.”
Johnson added: “Any time an organization gets layered with too much debt or is too focused on simply the financials and the bottom line, I think those things will take away from the work experience and work environment.”
‘Entrepreneurial platform’ crucial to talent attraction
Liberty aims to strike a healthy balance between organic and inorganic growth this year, leveraging its “robust pipeline” of M&A opportunities while prioritizing financial stability and building out its specialty lines.
Baillie said: “We’ve amassed a lot of amazing talent and a lot of clients in particular spaces, whether that’s real estate, construction, or oil and gas.
“We have leaders who want the opportunity to build a niche focused on whatever they’re passionate about, and that’s a key focus for us. We’ve identified some key areas, and we want to continue to grow in those spaces.
“This has also translated to allowing us to build a platform to attract new talent. Over the years, we’ve had a lot of new people joining us from the production side, and I think this is due to our entrepreneurial platform, where experts in a particular space can capitalize and build out their specialties within Liberty. We have a lot of flexibility to do what they feel is best to grow in that space.”
How is The Liberty Company cultivating a strong company culture?
Liberty’s leaders are passionate about creating a collaborative culture that puts employee happiness and well-being at the forefront. The broker was named one of Insurance Business America’s Top Insurance Employers in 2023.
Johnson, who stepped away from insurance to pursue a successful career as a film producer, said he returned to Liberty five years ago with a fresh perspective on how to run the brokerage.
“When I came back into the business, it was with the intention of being a servant-leader and inspiring a special culture, one to help our people be healthier and happier and to provide a platform for them to pursue their entrepreneurial dreams,” the CEO said.
Liberty has championed wellness initiatives such as meditation sessions, health talks, and personalized development plans for its employees. The company’s holistic approach to talent management focuses on individual fulfilment and growth, fostering a supportive environment where employees can thrive.
“Our talent strategy is less about a strategy and more a genuine intention to do right by and take care of our people,” Johnson said.
Do you have something to say about The Liberty Company Insurance Brokers and its growth plans for 2024? Please share your thoughts in the comments.
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