Hub's Treanor: Maintaining buyer discipline is crucial in specialty distribution M&A transactions

By Mia MacGregor

May 29 - (The Insurer) - Buyer discipline has to be paramount for specialty distribution deals, including for MGAs, and the biggest challenge is maintaining that discipline throughout a sale process, according to Chris Treanor, president of programs and specialties at Hub International.

Speaking during the M&A: The New Currency of Consolidation panel during the Program Manager Conference 2025 in New York, Treanor highlighted the impact of the COVID-19 pandemic on deal velocity, noting that it led to faster deal completions and reduced opportunities for thorough partnership assessments.

"In the past, you would spend a lot of time getting to know the seller, understanding their business, and building connectivity. Now, it's often reduced to two Zoom calls, and you're expected to submit your bid without asking for more information," Treanor explained. "This two-page (confidential investment memorandum) is very elusive, and that just adds more risk into the environment."

Treanor emphasized that with numerous buyers entering the market, there is less opportunity to effectively evaluate deals.

"Discipline on the buyer's side has to be paramount. If you get sloppy or make assumptions, you're going to get toasted. The biggest challenge is just maintaining that discipline throughout the process, which has become really compressed," he added.

He highlighted the importance of understanding one's value proposition.

"You've got to know your value proposition and align it with what the seller is looking for," he said. "If our value proposition is superior to the seller's expectations, it works. We can win with the right firm. You almost can't pay too much for a great firm, and you almost can't pay too little for a poor one.”

“As long as you remain disciplined, know what you want, and understand the benefits, you can navigate where the market needs you to go,” he added.