The Agency Perpetuation Process

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 […]

Perpetuation Planning – The Sooner The Better

When perpetuating an agency, it is important to remember that the earlier you start your planning, the more options you will have, and having more options increases your value. Agencies that wait too long or don’t plan effectively will have fewer viable options and may not realize the full potential value of their agency. Time […]

The Outsized Impact of Contingent Income

In our last article, we noted the impact of contingent income on agency profitability. We found that 34.3% of the agencies in our database rely on contingent income to be profitable, and that too many agencies are running their businesses as though contingent commissions are guaranteed each year. To further emphasize the importance income to […]