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So this name Arthur J.
In -- that it's a gigantic insurance broker more than four billion dollar market cap here in Chicago and they know what it takes to have -- -- in a very tough industry.
The cut went public back in 1980 -- continuing to grow with just a huge amount.
-- mergers and acquisition activity try this sixty acquisitions.
In just 2012 a lot of 43 of those were in the first nine months of the year.
This guy pat Gallagher Arthur J.
Gallagher chairman Chief Executive Officer president joins me out of Fox Business exclusive to talk about -- he swallowed that many I don't know whales minnows.
-- of all sizes but mostly medium sized businesses.
That we're in the three to ten million dollars in revenue range which trusses of business that would probably have anywhere from fifty to a hundred point -- people.
Follow company when you've fired merge and acquire a company like that pets have probably got very good -- -- -- -- netting out to get help but on.
What -- -- number one thing he was a CEO really needs to do to get them up to speed on the culture which is what we're just talking about Kevin Kelly culture at -- company.
99% of our due diligence in the acquisition area is and the culture.
The numbers are easy to figure out the brokerage business doesn't take risks we don't have big balance sheets it's not hard to see whether or not.
Someone is making money or not and if they're making money in the run and a good business and then comes down to the culture.
And 100% of our decision rests on whether or not we believe these entrepreneurs who built their own businesses.
We'll join our company instead we don't try this energize up the costs we want to -- people -- capabilities and grow their business.
Usually layoffs like Dubai company no we don't that's my usual because on the street that's what they'd look at that's what they usually do it's a different model were different industry this is -- -- inventory -- the notes a cliche that this is our inventories are people.
And so what we're looking forward good strong people who love the business and wanna -- And we give them an opportunity to move to a platform to be able to work on accounts that -- -- -- wouldn't be allowed to do and that's what excites them.
This is a company whose stock is up about 13% I want our viewers to countless well that they've got its dividend about about three point 6% -- -- -- dividend chasers I don't that's very attractive but.
Up pat let's talk about the insurance business right now and there is a lot of fear about the Affordable Care Act -- You're not -- -- all -- -- you basically have tried to figure out how best to prop department and you're able to charge more for certain policies is that correct how does not.
What wouldn't -- policies but here's what it is Affordable Care Act is so complicated -- -- very complicated act and yeah are up -- -- I could put up half.
But I've gotten lots and lots of colleagues that are all over that document and know exactly what it means for our clients and when things have to be staged in.
What the compliance issues are and when they have to be ready.
And what this is done has made it so it is such a difficult act to come to grips with many many clients thought Wall Street -- -- -- the Supreme Court allows -- -- And they didn't really pay attention to the how all of a sudden they're waking up with 2000 fourteens -- -- the corner a ton of things have to be done and they're scrambling.
And what it's also done it's it's put more further reason we got so many acquisitions on last year 333.
Of those were in the benefits space.
-- people realize that they need our capabilities to serve their clients so that actually helped us to to generate additional acquisition.
I have to sitting next to me here great -- resource I guess my question would be that there were a lot of complaints by the -- session highs for the markets at the moment thank you very much about that Obama Clinton -- but do you get the sense that a lot of employers because this has been sort of the the fear mongering and tactics or not I don't know that it's reality that employers will rather.
Pay the -- the fine.
Instead of cover their employees.
-- we shall we actually don't think that and the reason is -- that wouldn't look when you get above about 200 lives in the case of Lewis took the lives of countless.
The benefits portion is really part of the compensation package -- decide to -- the 2000 -- -- people -- to the -- -- you go -- but you're gonna have to give raises -- Because they've been getting a benefit the next has been -- -- so we believe that employers very much like when we saw the industry change when it came to pensions.
When were defined contribution as opposed defined benefit the employer stays written little that -- we believe that's it's gonna continue to have.
And what -- businesses employers are not dropping and walking into not planning on doing they're planning and deal with yet.
She loves his employees even the ones that he takes thought and give what's up sixty acquisitions and -- Gallagher it's great to have you we really appreciate it than -- -- -- -- -- is of Arthur Gallagher and and -- grand daddy started the business how about that that's right -- -- pot and a -- be very proud of you thank you very much.
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