Through this acquisition, the company seeks to enhance its presence in the Latin American markets
The Wyncrest Group, a niche insurance consortium, has reaffirmed that its pending acquisition of Florida Insurance Consulting is moving forward towards an agreement on the terms of the acquisition, as announced on July 28th, 2009.
This acquisition is an important factor to the growth in the Latin American markets. With the huge growth of the Spanish speaking population in the US, many markets are under-represented and many families and businesses need an insurance and financial services provider.
Wyncrest has been provided with (FIC) financials and is in the process of its due diligence. The acquisition is still targetted for completion in the fourth quarter.
Wyncrest plans to acquire insurance and financial services businesses and capitalise their asset of interest being the customer database with servicing contracts. These acquired customers and agent relationships provide immediate cash flow with little variable cost with fertile prospects for add on business with new clients and affiliate agents.
Keith Lanzara, president of Wyncrest Group, said: Acquisitions are limited to a book of business that has predictable revenue from policy renewal commissions. Costs can be reduced with a consolidated database administrator to improve customer retention and up selling. Typical deals will payback in 3 years using basic assumptions but Wyncrest’s efficiencies claim to move the payback to 2 years. Likewise, intellectual property development is a low cost revenue producer from existing resources.