INSIGHTS ON INVESTING IN TITLE INSURANCE COMPANIES

hello
I am looking at backing/partnering with a searcher who is evaluating a profitable title insurance company. Seller is looking to retire so clear rationale for exit (and the fact that 2020 was a bumper year for RE deals). Owner is apparently "absentee" with a solid management team in place. Opportunity comes from more aggressive business development.

Would be interested in any experiences or insights on what to think about when assessing the opportunity. Specific questions:
1. what are the biggest risks in such businesses?
2. what are typical multiples in the industry?
3. the industry seems quite fragmented. is that correct and if so why?

thanks everyone



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