Blog2020-09-17T14:36:55-04:00

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.

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.

Steps to Improve Confidentiality During the Sale of Your Agency

November 1st, 2018|

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 and requests and his/her own opinion of how to go about the process of acquiring your agency.  The potential of [...]

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 [...]

All About Agency Due Diligence

August 11th, 2018|

Agency due diligence means that you've taken the necessary steps to understand what you're acquiring in an agency acquisition. Any time you purchase an existing business, you're not only acquiring  the good: Goodwill Lines of Business Revenues Talent Technology You're also acquiring liabilities and obligations like: Debts/Overhead Retirement packages Outdated [...]

When Not to Buy an Insurance Agency

July 26th, 2018|

So, you're thinking about the possibilities of owning an insurance agency. Before you make the final decision gather as much information on the prospective purchase and leave nothing to chance. Take advantage of due diligence and hire a professional - it’s a lawful discovery process for collecting information about a [...]

How to Gauge the Health of an Agency Before Buying

July 11th, 2018|

Internal and external economic factors contribute to the health of most organizations. Other elements playing a major role in the insurance market include commerce risks. When you consider all of the possible components affecting the well-being of an insurance agency – it still comes down to profit. Look at the [...]

What Exactly is a Merger?

June 15th, 2018|

Mergers are business tools used for joining resources to develop a larger share of the market by offering consolidated services or expansions into new territories. Given that the insurance industry has several types of products, it’s normal for an independent agent to join forces with another agent or agency. At [...]

Blog Categories

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

COMPLETED TRANSACTIONS

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