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.
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
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:
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
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.
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
We do a lot of free and underpaid work for people in the insurance industry. I like to help people, share information and build relationships, so I am often willing to go out of my way to be of service. I’ll be honest though, I get frustrated when people don’t see the value that we add as a transaction advisor.
In the last few months we have been completely inundated with valuation work for principals, banks and buyers – part of the reason why I haven’t actively been blogging. Right now, we are averaging about 5 reports a week and have had to hire a few more staff to keep up with the pace. By now, everyone should have heard that we are in the most active M&A market in a long, long time. You should also have heard that valuation multiples are at an historic high with nearly no ceiling left – any higher and deals will cash flow negative after debt service.
The first step in selling your insurance agency should be to have a valuation performed by a firm involved in agency/broker M&A transactions. One might ask “Why?”. Well, thanks for asking. There are a few excellent reasons:
The freedoms we have in the US are amazing compared to other parts of the world. This time of year is when most people often reflect on things they are thankful for. But that’s not really the topic of my post. I’m talking about financial freedom and the freedom of letting go of your business.