The Insurance Agency Mergers and Acquisitions Insider

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

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. 

April 20, 2018 · Leave a comment

2018 Insurance Brokerage M&A Outlook

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

January 5, 2018 · Leave a comment

Value Drivers in an Insurance Agency

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.

June 15, 2017 · 4 Comments

Agency Valuations – The Truth About EBITDA Multiples

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

May 3, 2016 · Leave a comment

The Value of an Allstate Agency versus an Independent Agency

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

February 5, 2015 · 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

Insurance Agency Valuations: Is 2014 the Right Time to Sell?

  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

June 7, 2014 · Leave a comment