Blog2021-08-18T13:31:02-04:00

The Insurance Agency Mergers and Acquisitions Insider

This blog was designed for topical discussions relating to insurance agency mergers and acquisitions, and some best practices for managing an insurance brokerage business.  We are a merger & acquisition advisory firm exclusively serving independent insurance agencies and brokerages.  We are actively involved in valuations and M&A transactions across the United States for agencies with a few hundred thousand to over $10M in revenue, and we have chosen to openly share insider information for the benefit of the brokerage community.

Insurance Agency Valuations: Assessing Risk Factors

March 16th, 2021|

Agents reach out to us on a regular basis and ask: “what multiple are agencies going for?”  I had someone just last night message me through our website chat bot.  He or she wanted a quick answer about the current multiples.  I responded that it’s not a simple answer because [...]

Tax Implications of the 2020 Elections on Agency Sales

January 15th, 2021|

The 2020 election is behind us and a new president is about to take the helm in what has been one of the most tumultuous times in modern American history.  With the Georgia run-off elections decided, the Democratic Party has control over both the Executive and Legislative branches of government.  [...]

Stop Negotiating with Buyers on Your Own

December 9th, 2020|

The market is flush with buyers and we are well aware that they are pounding on agency owner’s doors on a daily basis.  Read this article to learn the #1 step to take to sell your insurance agency for the highest price.

What kind of agency owner are you?

March 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 people and dissect what it is about them that drives [...]

What is an agency worth?

October 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.

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

May 23rd, 2019|

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 though, the decision is based on a number of factors.  In our experience of working with hundreds of agency owners [...]

Projecting Cash Flow from an Agency Acquisition

January 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

October 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

September 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 your ability to take care of family and business is [...]

Navigating the Commercial Loan Process

September 4th, 2018|

If you think a loan is just a loan – stop. The purpose of a commercial loan is to generate revenue, make improvements (equipment) or commence new construction development. Generally, these loans have short durations, some have balloon payments and pre-penalty fees when it comes to paying off the loan [...]

Blog Categories

Selling an Insurance Agency
Valuing an Insurance Agency
Buying an Insurance Agency
Best Practices

COMPLETED TRANSACTIONS

  • Smart Choice Partners
    has acquired
    Atlantic Insurance Advisors
    Agency Brokerage Consultants served as advisor to Atlantic Insurance Advisors
  • Arthur J. Gallagher
    has acquired
    Fraser Yacht Insurance Services
    Agency Brokerage Consultants served as advisor to Fraser Yacht Insurance Services
  • All Risk, LTD
    has acquired
    Specialty Risk Underwriters
    Agency Brokerage Consultants served as advisor to Specialty Risk Underwriters
  • Hub International
    has acquired
    Farr Insurance Group
    Agency Brokerage Consultants served as advisor to Farr Insurance Group
  • AssuredPartners Aerospace
    has acquired
    Hardy Aviation Insurance
    Agency Brokerage Consultants served as advisor to Hardy Aviation Insurance
  • Sihle Insurance Group
    has acquired
    Webster Insurance Agency
    Agency Brokerage Consultants served as advisor to Webster Insurance Agency
  • Risk Cooperative
    has acquired
    Benefits Resources
    Agency Brokerage Consultants served as advisor to Benefits Resources
  • PCF Insurance Services of the West
    has acquired
    Leonard H. Franks, CPCU & Associates
    Agency Brokerage Consultants served as advisor to Leonard H. Franks, CPCU & Associates
  • Foundation Risk Partners
    has acquired
    Allen & Smith Insurance, Inc. DBA St. Johns Insurance Agency
    Agency Brokerage Consultants served as advisor to Allen & Smith Insurance, Inc. DBA St. Johns Insurance Agency
  • Higginbotham
    has acquired
    Extraco Banks - Commercial Insurance Division
    Agency Brokerage Consultants served as advisor to Extraco Banks - Commercial Insurance Division