The Insurance Agency Mergers and Acquisitions Insider

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

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 · Leave a comment

Time is the Enemy of Deals

  Over the past 10 years I’ve worked on hundreds of M&A transactions within the insurance industry and a major reason most deals fail to get across the finish line … Continue reading

January 7, 2016 · 1 Comment

Insurance Agencies for Sale

The purpose of this article is to give agency buyers some tips on finding agencies for sale and on how to get the attention of the owner or broker representing the agency.

November 15, 2014 · Leave a comment

Best Practices for Growing an Independent Insurance Agency

This presentation discusses some best practices for growing (and managing) an independent insurance agency based on our interaction with agencies around the country as a valuation and merger and acquisition … Continue reading

June 9, 2014 · 1 Comment

Are You Misrepresenting a Transaction to a Lender?

Acquisition financing can be difficult to secure, but if the deal, including the person attempting to get financing, cannot get approved legitimately then it’s not meant to be.  That is … Continue reading

March 12, 2014 · Leave a comment

Buying an Insurance Agency

View our video presentations on insurance agency valuations.  Please give us a call at (321) 255-1309 if we can be of any assistance to you. Buying an Insurance Agency: Part … Continue reading

November 7, 2013 · Leave a comment

Tips on Buying an Insurance Agency

The competition for buying an independent insurance agency is perhaps the highest among any industry for small business acquisitions. It is even more challenging if you are an agent that … Continue reading

November 7, 2013 · 3 Comments

Insurance Agency Mergers and Acquisitions

View our video presentation (bottom of page) and read the article below about what to consider before hiring an advisor to help you value, sell or buy an insurance agency. … Continue reading

November 5, 2013 · 1 Comment

Insurance Agency Financing

Gone is the day when the owner of an insurance agency will carry the sale price in a large promissory note or earn-out.  Make sure that you read that twice.  … Continue reading

August 9, 2013 · 2 Comments