Financing the future

Broker acquisitions are a daily occurrence and it is predicted that acquisition activity will step up post Financial Services Authority regulation as the value of brokers that become authorised increases. Nicolle Farthing reports

Whether a broker is looking to expand through acquisition or to fund a management buyout, raising finance is likely to be an issue as few businesses have sufficient resources of their own for such transactions.

Traditionally, insurers have offered financial support for brokers, however, this has become less common.

Oliver Laughton-Scott, managing principal of IMAS Corporate Advisers, says: "Insurers come in and out of the market, depending on how concerned they are about controlling distribution