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
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.
I’ve come across a few articles posted by agency valuation consultants challenging the use of EBITDA multiples in valuations. It can be argued that EBITDA is not a measure of … Continue reading
It’s pretty common knowledge that Allstate agencies generally sell for a higher multiple of revenue than independent agencies. Independent agents, and former Allstate agents, are also pretty vocal that the … Continue reading
As I reported in a previous blog a few months back, the market for selling an insurance agency is better than it has been in many years. The economy … Continue reading
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 … Continue reading