Tax Implications and Guidelines for Independent Insurance Agencies – Part 1
As an independent insurance agency owner, understanding the tax implications of your business decisions is critical, especially when considering a sale or transfer of ownership. Taxes can significantly affect the financial outcomes for both buyers and sellers. This article will explore the tax considerations for independent insurance agencies, focusing on goodwill versus capital gains tax, […]
Available Internal Perpetuation Options: The Agency Perpetuation Process Part 2
When it comes to planning for your agency’s internal perpetuation, there are numerous factors to consider, each requiring careful consideration and strategic discussion. This article, the second in this series by IA Valuations, will provide deeper insight into these elements and hopefully shed light on some of the complexities in these situations. Having a deeper […]
Big-Picture Questions for Navigating Perpetuation: The Agency Perpetuation Process Part 1
There are many things to consider when perpetuating your insurance agency. As there are many moving parts and the planning and execution can take several years, time is of the essence. This article will be the first in a series that discusses the various big picture questions to consider as you plan to perpetuate your […]
2024 Agency Tax Check-Up
As Tax Day 2024 approaches, we encourage independent agency owners to meet with their tax expert to review their current tax structure and to better understand the tax implications of a potential sale now, or sometime in the future. Ask your tax expert to lay out various scenarios for you and to help you determine […]
Small Changes That Will Impact Value
As we begin the new year, most agencies are focusing on growth and retention, which are two of the biggest drivers of agency value. Additionally, as the value of an insurance agency is largely tied to intangible assets like customer lists and relationships, we encourage the agencies we value and visit to also consider implementing […]
Understanding Your Agency Value in the New Year
To hit the ground running in 2024, it is essential to have a comprehensive understanding of your agency’s value and the strategic elements that can increase your agency’s value over time. Gathering the information necessary to critically evaluate your agency’s value will take time and it is best to be prepared to gather the needed […]
The Effect of the Hard Market on Agency Values
For many insurance agencies, the hard market yields a double-edged sword as it relates to agency values. Some of the impacts of the hard market can have a positive impact on agency value, while others will work to depress values. Understanding these impacts will be key to helping you navigate these uncertain times. The Insurance […]
The Importance of a Strong Balance Sheet
The value of a balance sheet is a key component in the calculation of agency value. We encourage our IA Valuations clients to bolster their balance sheets, not only to increase their agency value, but also for a myriad of reasons that will have both short-term and long-term impacts on the agency. Agency Reinvestment Agencies […]
Understanding How Revenue Per Employee Affects Your Agency Valuation
Staffing your agency with an effective, experienced, and professional staff is one of the most important components of maintaining and growing your agency value. It is a key risk factor in completing an agency valuation, and typically the first question a prospective buyer will inquire about when considering an acquisition. To better understand the impact […]
Narrowly- Vs. Broadly-Held Stock Ownership and the Impact on Agency Value
We have found that many agencies are on one side of the spectrum or the other when it comes to stock ownership. Whether they operate with narrowly-held or broadly-held stock ownership can have quite the impact on their agency’s value. We hope to highlight the major differences between the two in this article. Narrowly-Held Stock […]