Earlier this month, Macbeth affirmed its position as a leading regional broker, announcing its acquisition of Surrey-based Insurance Services Surrey Ltd (ISS). Bringing the independent broking group’s GWP income to £45 million, the deal saw its headcount grow to 72, including the former owners of ISS; Peter Sambrook, John Goodson & Rob Tipping who – alongside the wider ISS team – will remain with Macbeth.
Discussing how the acquisition came about, CEO Paul Macbeth (pictured) highlighted that M&A is a complementary activity for the group, which continues to prioritise driving strong organic growth. “Our focus remains on growing the business and growing our brand in the Thames Valley region and beyond into the home counties,” he said. “And that approach to growth has meant that, as a financially secure business which is 100% privately owned, we have the opportunity to make the right deal when it ticks all the right boxes.”
As to what the right deal looks like, Macbeth noted that the focus is on having the right cultural fit with any potential acquisition. “You need to know the business, its ethos and its people going in, he said, and you need to know that you’re going to have a great working relationship which, in turn, becomes a real partnership and a real friendship,” he said.
There’s so much discussion about the ‘war for talent’ in insurance, but for Macbeth and his team, that conversation can often lose focus on getting the basics right – taking a “grow your own” approach to your existing talent, and not letting great talent slip away during an acquisition.
“I’d like to say we had some master plan behind our success in retaining and developing talent when we do acquire businesses, but honestly it all comes down to just openly sharing your vision for the business and where it will go,” he said. “We think that’s what makes Macbeth not unique, but just a little bit different, and we know it resonates with the owners of brokerages who really just want to find a good home for their people, their clients and, quite often, themselves.”
For a proudly independent broking firm like Macbeth, it has been rewarding to see how this service-oriented approach resonates with the market, not least because it’s not in a position to pay the sort of multiples available from the corporates and the consolidators. “So, we have to think outside the box,” he said. “And our offering is that, if you sell your business to us, we’ll integrate it carefully, and we’ll look after you, your clients and your people. And that wins hearts and minds very quickly.”
Macbeth noted that the sector remains one of the few still fundamentally founded on strong relationships. It might be expected that this would have taken a hit given the rapid advances of new technologies, he said, but actually the post-COVID business operating environment is seeing renewed value placed on the power of great service.
“You can see it, even just a consumer, that personal service dropped off quite significantly during the COVID years among all sorts of different organisations, and many of them just haven’t bounced back,” he said. “That’s where we see the opportunity to buck the trend and be even more active that we have been in getting in front of our clients. It might seem traditional or even old-fashioned, but I know that it’s what I want as a consumer. I want to see my bank manager, I want to see my accountant and I’m prepared to pay a bit extra if necessary to get access to the right kind of service.
“Our business model is grounded in the idea that there are plenty of people who do want a hands-on approach from their broker who, let’s face it, in the vast majority of cases, do an exceptional job for their clients. I think we probably don’t shout about that enough because insurance is quite a modest industry. But we should because it’s true.”
Looking to the year ahead, Macbeth highlighted the firm has no intention of resting on its laurels. ISS will continue trading under its own name and brand for the next 12-18 months, he said, and then will start to be integrated into Macbeth, in line with the group’s ambition to create a holistic business rather than to just add bolt-on acquisitions. Embedding the Macbeth culture across the wider firm will be a top item on his agenda for the year ahead, but it has a blueprint for success in the acquisitions it has already completed.
“We don’t intend to do any more acquisitions this year, though we do have a couple of opportunities that are right in their early stages,” he said. “If they were to complete that would run into 2026 for us. For us this year is about focusing on the team we’ve got.”
The growth of the team has meant the brokerage is now hunting for a new office, he said, having outgrown its Reading-HQ. The next step will mean doubling, if not trebling, its existing office space, which he believes will be an added tool in attracting and retaining the best people. “It’s a real sign of our commitment to the business, to make that move and commit to another long lease. We intend on being around for a good while yet.”
