Spotlight on Some of Colonnade’s Favorite Industries

Colonnade is proud to present our latest series of podcasts on “industry spotlights,” focusing on specific trends and opportunities in middle-market M&A transactions.  

Hear Jeff and Gina dive deep into some of the industries where we’ve advised on scores of successful M&A transactions over the past two decades. 

These conversations can be very helpful to our clients, private equity firms, and strategic buyers. In this series, we focus on, Insurance Premium Finance, Vehicle Service Contract Administrators, Automotive Reconditioning, and Home Warranty. 

Coming soon to the podcast – our next two industries of focus: F&I Agencies and Payment Plan Providers.

We’ve selected two key quotes from each of the podcasts to summarize the trends.  You are also invited to listen to the full episodes and read additional industry coverage via the links included. 

Insurance Premium Finance

Insurance Premium Finance is an exciting $40 billion industry where Colonnade has dominated in the role of advisor to both buy-side and sell-side clients. With over two dozen successful transactions under our belt, our industry focus allows us to deeply know the industry players and provide exceptional service to clients who hire us to assist them in a transaction.

The quotes are from Jeff Guylay, aired during our episode dedicated to insurance premium finance. 

You can also read our Quarterly Updates on the industry here.

Click here to listen to the full podcast, Industry Spotlight on Insurance Premium Finance.

Vehicle Service Contract Administrators

The industry value chain includes administrators, F&I agencies, direct-to-consumer marketers, payment plan providers, and specialty insurance carriers. In 2018, the industry was $35 billion at retail with significant opportunity for growth; there were 132 million vehicles that did not have a VSC but were eligible. The vehicle service contract (VSC) industry continues to attract significant interest among investors and consolidators. Macro fundamentals are compelling, and the industry demonstrates growth, strong margins, and recurring cash flow.

We’ve pulled out two key quotes from Gina Cocking aired during our episode dedicated to Vehicle Service Contract Administrators. 

You can also read our 2019 Industry Report here.

Click here to listen to the full podcast, Industry Spotlight on Vehicle Service Contract Administrators.

Automotive Reconditioning 

The automotive reconditioning industry is $5.4 billion, fragmented, and ripe for consolidation.

Most of the reconditioning outsourcing is to self-employed specialists who serve a single or a few stores. Management of outsourcing to sole proprietors is inefficient for dealerships. There is an unmet need for reconditioning companies with the scale to provide all the necessary reconditioning services coupled with sophisticated management systems that enhance transparency and performance.

The quotes are from Gina Cocking, aired during our episode dedicated to the Auto Reconditioning industry.

You can also read our 2021 Industry Report here.

Click here to listen to the full podcast, Industry Spotlight on Automotive Reconditioning.

Home Warranty

The Home Warranty industry is a $2.6 billion high-growth industry that Colonnade believes will experience significant consolidation in the years to come. 

The home warranty industry enjoys compelling industry fundamentals, including reoccurring revenue, and strong growth, margins, and cash flows. The largest players continue to acquire well-performing, high-quality local and regional players. Combined with obvious exit alternatives, the home warranty segment seems like a natural market to attract institutional investor interest.

We’ve pulled out two key quotes from Jeff Guylay aired during our episode dedicated to the Home Warranty industry.

You can also read our 2021 Industry Report here.

Click here to listen to the full podcast, Industry Spotlight on the Home Warranty Industry.