The Insurance Agency Mergers and Acquisitions Insider
This blog was designed for topical discussions relating to insurance agency mergers and acquisitions, and some best practices for managing an insurance brokerage business. We are a merger & acquisition advisory firm exclusively serving independent insurance agencies and brokerages. We are actively involved in valuations and M&A transactions across the United States for agencies with a few hundred thousand to over $10M in revenue, and we have chosen to openly share insider information for the benefit of the brokerage community.
The Mistake that 70% of Agency Sellers Make
I stumbled across an interesting video online the other day. One of the large brokers that acquires agencies had created a presentation to train their people on how to pursue and negotiate acquisitions. This internal M&A strategy has become a growing trend. The buyers are paying for ads to lure [...]
Leadership Lessons from Coaching Kids
I had the pleasure of being the assistant coach for my sons' under-11 soccer team this spring. I should mention it was my first time coaching. I’ve managed employees for years, but the experience amplified some points about leading a team. Given the many parallels between business and sports, I [...]
Q1 2022 M&A Market Update
If you are a regular follower of Insurance Journal, you may have noticed that there have been fewer announcements of agency acquisitions since the beginning of the year compared to 2021. There may be several reasons for this anecdotal observation. One consideration is that the 4th quarter of 2021 included [...]
The Value of Customer Retention
When it comes to agency valuations, agency owners often ask us questions like, “How is the value of our years in business, our reputation, our organic growth, or our customer retention rate factored into the analysis”? The simple answer is that all aspects, if valuable, contribute to the economic performance [...]
Mistakes that Buyers Make during the Acquisition of an Insurance Agency – Part 2
In my last post, I discussed three common mistakes that buyers make when acquiring an agency: (1) letting emotions cloud your judgment, (2) getting misled with incomplete information and (3) being influenced by transaction advisors. All three deal with collecting and processing information. In this post, I want to talk [...]
Mistakes that Buyers Make during the Acquisition of an Insurance Agency – Part 1
Everyone in the industry has heard stories of buyers succeeding in rolling up agencies and selling for huge multiples. I bet everyone has also heard the war stories of failed acquisitions – employees and producers jumping ship, carriers terminating contracts, customers leaving in droves, etc. We’ve reviewed the financials of [...]
Insurance Agency Valuations: Assessing Risk Factors
Agents reach out to us on a regular basis and ask: “what multiple are agencies going for?” I had someone just last night message me through our website chat bot. He or she wanted a quick answer about the current multiples. I responded that it’s not a simple answer because [...]
Tax Implications of the 2020 Elections on Agency Sales
The 2020 election is behind us, and a new president is about to take the helm in what has been one of the most tumultuous times in modern American history. With the Georgia run-off elections decided, the Democratic Party has control over both the Executive and Legislative branches of government. [...]
Stop Negotiating with Buyers on Your Own
The market is flush with buyers and we are well aware that they are pounding on agency owner’s doors on a daily basis. Read this article to learn the #1 step to take to sell your insurance agency for the highest price.
How to get the highest sale price for your agency
The market is flush with buyers and we are well aware that they are pounding on agency owner’s doors on a daily basis. Read this article to learn the #1 step to take to sell your insurance agency for the highest price.
Will your agency be worth more before or after the pandemic?
As one of the nation’s leading agency valuation firms, we’re fielding many calls these days from agency principals, buyers and lenders about what impact the pandemic will have on agency values.
What kind of agency owner are you?
I have had the fortune of interacting with hundreds of business owners over the years. Going even back as far as my college days when I bar tended at a yacht club, I’ve always tried to take note of successful people and dissect what it is about them that drives [...]
What is an agency worth?
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.
How to Know When it’s Time to Sell Your Agency
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, though, the decision is based on a number of factors. In our experience of working with hundreds of agency owners [...]
Six Mistakes to Avoid When Selling Your Insurance Agency
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:
Projecting Cash Flow from an Agency Acquisition
In my post from October, I discussed debt coverage ratios and EBITDA multiples. Now let’s talk about projecting cash flow. I’m shocked how many buyers make offers without figuring out what the cash flow will be with financing. I’m not alone either. I’ve spoken with many loan officers that deal with the same issue. This article is long overdue.