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.

If you can’t Grow, it might be time to Go!

2020-09-13T18:53:40-04:00April 20th, 2018|

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. 

2018 Insurance Brokerage M&A Outlook

2020-09-13T18:49:22-04:00January 5th, 2018|

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 over the same period of the prior two years, both [...]

Value Drivers in an Insurance Agency

2020-09-13T18:39:41-04:00June 15th, 2017|

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.

Producer-Owned Books: A Potential Deal Killer

2020-09-13T18:12:09-04:00February 11th, 2014|

We occasionally run into insurance agencies that have independent contractor producers that own the rights to their book of business.  These arrangements almost always create a problem with selling an agency.  The arrangements usually evolve from the principals’ desire to [...]