Sectors

Buying or selling an intermediary

Buying or selling an intermediary can be a complex, stressful and expensive process. Our specialist team can support your business drawing on their extensive experience in supporting transactions, both in the insurance broking and MGA market, acting for both buyers and sellers.

Our Transaction Services team support businesses at each stage of their lifecycle, providing a comprehensive approach to ensure that buyers and sellers get the most out of the due diligence process. In each of the last two years, PKF have advised on more than 100 deals, £2bn of transaction value and the team has brought 25 businesses to the UK. Our team encompasses a wide range of services, including a full suite of due diligence, valuation, tax advisory and structuring, financial modelling and general transaction advisory support.

As part of transactions, issues can be identified which our team will work to resolve, however where possible it is best to get ahead of these and put solutions in place before the transaction occurs.

Accounting and systems support

Our Business Solutions team can support both buyers and sellers during intermediary transactions. For companies looking to sell, our team can assist with ensuring financial information is up-to-date and accurate, and the operations of central systems are running smoothly. Our team can support with financial system health checks, ledger reconciliations and preparation of completion accounts. This support will ensure that processes and control environments are appropriately evaluated, and possibly updated, prior to sale.

For companies looking to buy, our team can provide an outsourced finance function in the lead up to or during the process of a sale. If you’re looking to enter a high-acquisition period, it can be a very busy time and you may need more support. Our experts can assist with the day-to-day finance function and ensure smooth integration of the new entities into your group, through transitioning all separate finance functions and insurance ledger systems onto one central and aligned system.

Business and employment tax

During insurance intermediary transactions, we typically see the same tax issues arise. When selling your business, we can help guide you through the different rules, provide advice on the tax position for the vendors and how to structure the transaction as efficiently as possible. We can also assist you during the due diligence process, working with purchasers and their advisers to help resolve any tax issues.

For those looking to make an acquisition, our team has extensive experience with experts in tax due diligence and structuring, as well as specialists in other taxes. They will help evaluate the business, assess the tax risk and identify how best to resolve any issues as well as provide advice on how to structure each acquisition.

Financial and client money issues

Our expert team get into the heart of every deal and understand the issues which can occur during transactions. We often find the same concerns arise, all of which can impact businesses of any size. Our team can help you manage and resolve concerns as early as possible. Whether it be reconciliation of data and systems, ensuring renewal and growth rate accuracy, or client money and risk transfer, to name but a few, our financial due diligence team is well placed to assist both buyers and sellers.

Technology 

Our IT due diligence and assurance team is comprised of both qualified IT auditors and professional IT staff, ensuring both practical technology use and robust audit procedures. In recent years, we’ve witnessed acquirers undertaking extra due diligence and challenging IT assumptions more than ever before, sometimes delaying or, in extreme cases, stalling the transaction process. We often find the two main concerns of buyers in the broking market are – whether an organisation possesses an up-to-date IT inventory and the practical application of data protection policies. Our team can also assist with automation, regulatory compliance, cybersecurity and analytics.

 VAT 

In many instances we find, during a transaction, that non-core income items are assumed to be VAT exempt due to being insurance or financial services related. This is not always the case. Our team can provide advice on HMRC guidelines regarding VAT exempt items, in addition to VAT registrations, services received from non-UK entities, and charges between group entities, to ensure your deal doesn’t experience delays.