NEW YORKSHIRE BASED INSURANCE BROKERS SETS OUT ON THE ACQUISITION TRAIL
Schofield Sweeney has advised NMJ Insurance Brokers Limited (NMJ Insurance), a branch-based broking network established recently by two former directors of Equity Insurance Brokers, on its first acquisition.
Nick Potts, the former Managing Director of Equity Insurance Brokers, and Mike Hutton, former Acquisitions & Insurer Development Director at Equity, established NMJ Insurance in April 2009 and received confirmation of FSA authorisation in December 2009. Their first corporate acquisition, of Ridge Insurance Services (Ridge Insurance) based in Glossop, Derbyshire, completed on 18 January 2010.
Ridge Insurance was originally established in 1970 and has secured a pre-eminent reputation in the town, trading from the current premises since 1972. It has grown significantly and now has over 4,000 commercial and personal clients. The existing ten employees, including the original founders Bill Higginbottom and Allen Bouchier, will remain with the business.
Mike Hutton said, “This acquisition fits perfectly with our strategy to buy quality, established businesses in communities which have strong customer loyalty and, by virtue of being located in good underwriting areas, can also provide excellent returns for our insurer partners. This, together with our strong relationships with many of the senior people in the insurance industry, will help us to obtain competitive premiums which we can pass on to our customers. The high levels of recommendations and strong retention rates demonstrate the strength of the business and the support received from the local community.”
In addition to completing its first acquisition, NMJ Insurance has also announced that it has also taken on office premises. The new premises at The Elsie Whiteley Innovation Centre in Hopwood Lane, Halifax will be the Head Office of the new venture going forward.
Nick Potts said, “Setting up and growing a business in the midst of a recession is not for the feint hearted. Whilst the market conditions are undoubtedly tough for all, we have a sound acquisition strategy that will enable future growth. Funding for the business was available from several sources, including private equity investment and bank funding. In the end, we chose financial support from a private investor who knows Mike and I and who also understands the insurance market. We have also enjoyed excellent advice from our solicitors, Schofield Sweeney, who we have worked with for many years and who also have a sound understanding of the insurance sector and business acquisitions.”
Legal advice on the establishment of NMJ Insurance and the acquisition of Ridge Insurance was provided by Martin Sweeney of Schofield Sweeney Solicitors in Bradford. He said, “I have acted for both Nick Potts and Mike Hutton for more than 20 years, during their time as directors of Colonnade Insurance Brokers and Equity Insurance Brokers. With such a wealth of knowledge, experience and enthusiasm between them, their new business will undoubtedly go from strength to strength and I wish them every success.”