Ryan Specialty has outsized deals forward in M&A pipeline

Ryan Specialty has some large and more demanding targets front and centre in its M&A pipeline, CEO and founder Pat Ryan (pictured) has indicated.

“There are some opportunities that are larger,” Ryan told his company’s Q2 investor call.

Asked why prior hints at pending deals hadn’t resulted in headline news, Ryan shot back with still-heavier hints at deals sufficiently sized to warrant a slow-go methodical approach.

“When you have larger acquisitions, potentials, there is a lot of work to do in terms of when they are ready to sell,” Ryan claimed. “Sometimes it is a little bit earlier than they planned, sometimes it takes longer to get the value that they want.” The bigger the target, the higher the burden of proof.

Smaller tuck-in deals have been numerous, but insufficiently attractive to merit pulling a trigger. “We’ve looked at many,” Ryan said. The bar remains high for cultural fit, strategic fit and accretion to earnings.

M&A would come above and beyond organic growth that Ryan currently sees in a range of 16.5 to 18.0% in 2022.

“M&A remains supplemental to our organic growth strategy,” Ryan said. “We are not a roll-out.”

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