J. Gallagher on M&A multiples
From Sica | Fletcher Leaders & Legends | Pat Gallagher | May 2026 · · Sica | Fletcher
“We are leading the way and saying, 'Look, multiples got to come down.' And that's just a fact because we are not in the business of diluting our shareholders. So if our multiples down, we can't simply pay what somebody would like to get.”
On , J. Gallagher, Chairman & CEO at Arthur J Gallagher & Co, spoke about M&A multiples during Sica | Fletcher Leaders & Legends | Pat Gallagher | May 2026 on Sica | Fletcher.
About J. Gallagher
J. Patrick Gallagher Jr., chairman and CEO of Arthur J. Gallagher & Co., has been discussing the company's financial performance and strategy during recent earnings calls. In the first quarter of 2026, he reported that the company's two-pronged revenue growth strategy of organic growth and acquisitions delivered a 28% revenue increase, with organic growth of 5% and M&A contributing 23%, driven by results from Assured Partners. Gallagher stated that the company had approximately $655 million in tax credit carryovers and about $11 billion in tax-deductible amortization expense, which he said would result in cash taxes paid of around 10% of EBITDA for the foreseeable future. He also noted that the company might have close to $10 billion to fund M&A over the next two years before using stock, describing the M&A pipeline as strong and full of targets at attractive multiples. Gallagher has also commented on market conditions and the role of artificial intelligence. He described the current insurance market as having "cycles within the cycle," with property rates declining and casualty rates still increasing, and stated that the market is "one storm away from turning in property." Regarding AI, Gallagher said he expects it to be "minimally disruptive" to the company's advisory-led business and that it "actually should accelerate our growth" by enhancing the delivery of advice and client solutions. He also noted that the fastest-growing part of the company's excess and surplus lines business comes from emerging specialty risks such as data centers and AI-related infrastructure.