A Partnership Three Years in the Making - Coastal Insurance Underwriters Has Partnered with Constellation Affiliated Partners

JACKSONVILLE, Fla., Feb. 22, 2021 /PRNewswire/ -- The owners and founder of Coastal Insurance Underwriters (Coastal) have partnered with Constellation Affiliated Partners (Constellation). With this transaction, Constellation expands its product offerings to the condominium association and homeowner's association marketplace. Heritage Capital Group (Heritage), an investment banking and financial advisory firm serving middle-market and emerging-growth companies, acted as the lead advisor to the seller and the management of Coastal in the preparation of the sale process and due diligence, the approach, and parallel negotiations with potential buyers and assisted them until closing. The deal team included Dan Edelman, Howard Serkin, Alex Kellison, Don Wiggins, and Doug Kravet.

Coastal provides insurance products for a variety of community associations, including condominiums, homeowners, and golf and country clubs. Headquartered in Ponte Vedra Beach, Florida, it is one of the largest managing general underwriters focusing on this sector, with over 8,000 community associations currently insured. The firm distributes its products online and aims to provide highly specialized and financially sound insurance products through automated and user-friendly solutions.

"Heritage's expertise and their ability in communicating with both the buyer and seller was a great advantage to us," remarked Charles Bushong, owner and CEO of Coastal. "Their professional approach, level of detail, and problem-solving skills really impressed me and brought a lot of value to the transaction process."

Attorney Leslie Wickes, Partner in Charge of Adams & Reese, LLP's Jacksonville office, represented Coastal during the transaction process and worked closely with the Heritage team. "Heritage's involvement was key to closing this transaction smoothly on terms that met our clients' goals. They took the time to build the financial model, understand the industry, identify the best private equity partner, and negotiate the best deal possible."

Constellation, backed by RedBird Capital Partners, is a New York-based insurance consolidator. The firm is active in acquiring MGUs, program administrators, and wholesalers in the USA and Canada. Constellation seeks partnerships with companies that have demonstrated superior underwriting principles and have earned a solid industry reputation.

The M&A market for insurance distribution and services has been extremely robust over the last three years, with nearly 700 transactions closed globally, according to S&P Capital IQ. A number of highly active consolidators in the industry are seeking to roll up various segments to secure and build market share.

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Katie Quackenbush
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SOURCE Heritage Capital Group