CHICAGO, April 20 /PRNewswire/ -- Cochran Caronia Waller recently issued a research report titled "Broker Deals: Potential Buyout Premiums". Our findings and investment conclusions are summarized below. The Insurance Broker segment should continue to see a high level of buyout activity. The main driver will likely be increased interest from the private equity community. To date, current shareholders have reaped huge gains (40% plus) from the recent buyouts (Hub and USI). The major question is can future buyouts provide similar levels of return to the shareholders? This report contains a simplified LBO analysis that demonstrates potential premiums from current share prices for all of the public insurance brokers and resulting returns for financial buyers. Our conclusion is that premiums are still possible, but at lower levels compared to the previous deals.
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