The Insurance Agency Mergers and Acquisitions Insider

Content by Agency Brokerage Consultants www.agencybrokerage.com; Direct (321) 255-1309

Will your agency be worth more before or after the pandemic?

As one of the nation’s leading agency valuation firms, we’re fielding many calls these days from agency principals, buyers and lenders about what impact the pandemic will have on agency values.

April 30, 2020 · Leave a comment

What kind of agency owner are you?

I have had the fortune of interacting with hundreds of business owners over the years.  Going even back as far as my college days when I bar tended at a … Continue reading

March 23, 2020 · 2 Comments

What is an agency worth?

This question is one of the main reasons people call our office. In fact, we complete over 120 valuations of insurance agencies and brokerages each year for agency owners, buyers and lenders all asking for our professional opinion on agency market value. We are the most experienced firm in the nation when it comes to valuing agencies with under $5M in revenue, which is why the leading lenders in the insurance industry turn to us.

October 29, 2019 · 2 Comments

How to Know When it’s Time to Sell Your Agency

Selling a business is a major decision.  On occasion the decision to sell is driven by one factor, such as the principal facing a health concern.  For most agency owners … Continue reading

May 23, 2019 · Leave a comment

Six Mistakes to Avoid When Selling Your Insurance Agency

Since you will only sell your agency one time, its vitally important that you get it right the first time.  So here are six mistakes to avoid when selling your insurance agency:

February 11, 2019 · Leave a comment

Projecting Cash Flow from an Agency Acquisition

my post from October, I discussed debt coverage ratios and EBITDA multiples. Now let’s talk about projecting cash flow. I’m shocked how many buyers make offers without figuring out what the cash flow will be with financing. I’m not alone either. I’ve spoken with many loan officers that deal with the same issue. This article is long overdue.

January 14, 2019 · Leave a comment

Steps to Improve Confidentiality During the Sale of Your Agency

When it comes time to selling your agency, confidentiality is vitally important.  You may be dealing with one or more buyers, each of whom will have a multitude of questions … Continue reading

November 1, 2018 · Leave a comment

Financing Agency Acquisitions – Understanding Debt Coverage

Different lenders underwrite acquisition financing a little differently; however, they all typically want to stay under 6 x EBITDA on leverage.  The reasoning is fairly simple…cash flow.  As we’ll see below, agencies don’t cash flow well when they leverage themselves over about 6 x EBITDA.  One of lenders’ key underwriting metrics is something called the debt coverage ratio, which is a measure of the cash flow cushion over debt payments. 

October 11, 2018 · 1 Comment

If you can’t Grow, it might be time to Go!

When agency revenues start to fall year-over-year, there is usually a reason.  Sometimes the trend can be reversed, such as if it is tied to an economic cycle, but quite often the downward trend is unstoppable.  In our experience, a steady decline in the business is typically an indicator that one or more of the agency principals are spending less time running the business.  The enthusiasm and competitiveness that perhaps once drove growth in the business has waned. 

April 20, 2018 · 1 Comment

2018 Insurance Brokerage M&A Outlook

As noted by many in the agent/broker M&A world, 2017 was the most acquisitive year on record.  Reported transactions were up 20% for the first three quarters of the year … Continue reading

January 5, 2018 · Leave a comment