Broker M&A: Uncovering Hidden Liabilities 
The continuing need for new sources of income, market clout and alternative production capacity in uncertain times has fueled the search by large and small brokers alike for potential merger and acquisition candidates. In pursuit of ever-increasing revenues, many brokerage executives have become accustomed to an analysis of potential acquisitions by focusing upon brokerage valuations, market clout and increased capacities.
Such clearly valid criteria aside, many agency executives nonetheless tend to ignore certain vital aspects of brokerage unification, such as hidden legal liabilities, potential cultural dissonance in the combined entities and the inherent instability of brokerage business valuations.
The ability to take a sharper view of the less obvious factors to be considered in the process of acquiring a business may well constitute the difference between a smooth transition and a rocky, exhausting travail. As a result, careful consideration of all aspects of how a brokerage will be affected by an acquisition is crucial.
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