About Mike Mensch

Michael is a managing partner and client advisor for Agency Brokerage Consultants, a national mergers and acquisitions firm serving independent insurance brokerages.

What kind of agency owner are you?

2020-09-13T19:12:29-04:00March 23rd, 2020|

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 yacht club, I’ve always tried to take note of successful [...]

What is an agency worth?

2020-09-13T19:11:03-04:00October 29th, 2019|

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.

Projecting Cash Flow from an Agency Acquisition

2020-09-16T10:04:23-04:00January 14th, 2019|

In 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.

Financing Agency Acquisitions – Understanding Debt Coverage

2020-09-13T19:02:08-04:00October 11th, 2018|

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. 

National Preparedness Month: Selling Opportunities

2020-09-13T18:59:00-04:00September 15th, 2018|

National Preparedness Month is about taking the necessary steps to prepare for natural disasters or the unforeseen emergency. When it comes to preparing for the unexpected – the first step is to check your insurance coverage. Without the proper coverage [...]