Divestiture - Financial Services

Ontario East Insurance Agency Ltd. was a very well established and profitable broker/distributor of insurance and related financial service products. Located in Toronto and also serving Eastern Ontario markets such as Kingston and Ottawa, the company was annually ranked in the top 3 Equinox Financial franchises for production of life, living benefits and investment products. Apart from insurance and money management, the company focused on income replacement, critical illness and long - term care. After spending the early part of his career as a lawyer for one of Canada’s major insurance companies, David Juvet purchased, first a minority position, then sole ownership of the company. With his children pursuing careers in other industries, the decision was made to expand the business for sale years before going to market.

The Divestiture Process

There was significant interest in this business as it was growing and profitable. In the middle of the process, an acquisition opportunity surfaced. We therefore placed the divestiture timetable temporarily on hold while the internal acquisition was completed ultimately strengthening the business for the eventual sale. This decision extended the time frame to complete the sale of Ontario East but served to enhance the value.

Results

The business was sold to an industry buyer and is now part of Bridgeforce (Ontario) group of managing general agencies. As was his plan, David returned to financial advisory work therefore realizing a liquidity event from the business he expanded while continuing to work in the industry.

Key Success Factors