Goosehead Insurance IPO

Overview

Goosehead Insurance, a growing personal lines broker, engaged the ICR financial services team in late 2017 for pre-IPO financial communications.

BACKGROUND

The Challenges

The Company had success in the years leading to its IPO, and a significant organic growth trajectory not normally seen in the insurance space, but were starting from a low revenue base compared to commercial peers.

Further, they were the only pure play personal lines broker and would naturally be comped to more mature commercial peers.

In addition, IPO proceeds were being used to clean up LLC structure, and the Company had a dual-class structure.

Highlights

Exchange

NASDAQ

Valuation

$362 million

Awards

#1 Financial Services U.S. IPO for all of 2018 (+163% return from IPO to end of 2018)

Our Solution

ICR conducted due diligence with the Company and determined that the business was sound, but there were many moving parts that needed to be tightened to ensure the IPO would be successful.

Pre-IPO planning

Prepared Company for the IPO process, most notably revised testing-the-waters (TTW) presentation, prepared Q&A for the TTW meetings, analyst and internal model reviews, Analyst Day preparation, S-1 review, etc.

Messaging to communicate value

Importantly, while commercial lines insurance brokers are typically valued on P/E, Goosehead needed to convince analysts that DCF and a focus on the 3-5 year rapid growth trajectory was a more appropriate measure in order to achieve a successful IPO. ICR worked with Goosehead to craft appropriate messaging to help analysts understand and “buy in” to a valuation based on DCF and long-term rapid growth.

Refreshed branding & digital presence

Given Goosehead had no real national or digital profile, ICR recommended and Goosehead engaged ICR’s video and digital branding teams for IPO video work and a corporate website revamp to coincide with the IPO.

IR infrastructure planning

Partnered with Goosehead on development of its investor relations infrastructure to position the Company for the public markets.