Leavitt Group gears up for additional growth, goals to double income

As one of many prime nationwide insurance coverage brokerages, Leavitt Group has been steadily constructing its enterprise via focused acquisitions and natural progress, increasing its nationwide footprint whereas maintaining a detailed eye on its core values.

The Utah-based agency is gearing up for extra mergers and acquisitions within the Midwest, the most recent of which was Elliott Insurance coverage Group in North Carolina.

 On the identical time, Leavitt Group plans to increase its footprint within the monetary companies sector and its worker advantages division, which presently makes up 25% of its income.

“We very a lot wish to develop by way of acquisition, in addition to organically,” mentioned Kevin Callister, (pictured) chief affiliations officer at Leavitt Group.

What’s behind Leavitt Group’s “spoke and platform” acquisition mannequin?

Talking to Insurance coverage Enterprise, Callister make clear the corporate’s acquisition technique and progress plans, revealing a methodical and long-term method.

“About three years in the past, we fastidiously focused many Nationwide companies. Nationwide, as a provider, was shifting these companies into the unbiased market, they usually wanted help,” he mentioned.

“As an unbiased dealer, we strategically pursued companies that aligned with our tradition, buying a number of platform-style companies that might function independently inside our useful resource platform. After these acquisitions, we started buying smaller companies—spokes—that might combine into these platforms and develop profitably.”

The acquisition of Elliott Insurance coverage Group is a key instance of this technique in motion. Elliott was added as a “spoke” company, attaching to an present platform company in North Carolina.

Callister emphasised that Leavitt Group’s progress technique is not only about financials or geographic growth – it’s about guaranteeing cultural alignment with the companies they purchase. “If there is no tradition similarity, if we will not get alongside from that perspective, there is no purpose to do a deal,” he mentioned.

The group is actively in search of alternatives to accumulate each platform and spoke companies on this area over the subsequent two to a few years, whereas its present strongholds alongside the Jap Seaboard additionally stay an space of focus.

Geography, nevertheless, is just one consider Leavitt Group’s M&A method. In keeping with Callister, the group evaluates potential companions primarily based on the company’s enterprise mannequin and skill to contribute to the group’s broader objectives.

Every platform company operates as a separate C company, with Leavitt Group proudly owning 60-75% of the enterprise and the remaining portion owned by native companions. This mannequin permits the group to keep up native experience and relationships whereas offering centralized help.

“This partnership permits us to carry our experience and back-end help whereas they concentrate on relationships,” Callister mentioned.

Leavitt Group’s subsequent objectives: Diversifying and hitting a income goal

Leavitt Group has additionally made a gradual tempo of acquisition regardless of “market turmoil” lately pushed by rising rates of interest. Not like personal fairness companies, nevertheless, Leavitt Group is privately owned, which provides them extra flexibility in navigating the market.

Callister highlighted that the group has been pursuing this mannequin for many years, with the primary partnership company established again in 1959.

“Since Vicky Levitt opened the doorways in 1952 and our first partnership in 1959, insurance coverage has been core to us,” he mentioned. “We’re bullish on the trade and assured it would thrive in its relationship-driven format.”

By way of diversifying its enterprise strains, Callister mentioned: “You’ll see us construct out our worker advantages aspect of the home,” noting acquisitions on this house are prone to play a key position in that progress.

Monetary companies, together with 401(ok) and wealth administration companies, are additionally on the radar, however Callister mentioned this space requires a extra cautious method as a result of regulatory complexities concerned.

“We simply hit $500 million in income, and our objective is to double that within the subsequent 5 years, with acquisitions enjoying a giant position. We purpose for balanced progress, concentrating on 50% via acquisitions and 50% organically,” he mentioned.

As Leavitt Group continues to increase, Callister mentioned that its success would rely on sustaining its concentrate on tradition and partnership.

“We imagine that we’re stewards to every of our 3,000 workers, to our vendor companions and all stakeholders,” he mentioned. “Via his stewardship method, we’ve constructed a rising, worthwhile enterprise the place everybody advantages. This philosophy actually defines who we’re and the companions we search to align with. It’s the core of our tradition and our manner of doing enterprise.”

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