Help! I’m Not Getting Profit-Sharing This Year. What Effect Will It Have on My Agency Value?
Unfortunately, you may be one of the many agencies not receiving profit-sharing due to the inflated loss ratios caused by the hard market. While this will have an impact on your value, the good news is the hard market is likely temporary and should not have a profound impact on the value of your agency […]
Help! I’m Buying My Dad’s Insurance Agency and It Has Not Been Updated in 35 Years
After much consideration, you’ve made the decision to purchase your father’s insurance agency. He’s been dreaming of this moment since you were a child; this day has felt inevitable for you since childhood. He always brought you into the office on the weekends, having you file papers, shovel snow, vacuum the floors, and had you […]
Help! I’m 65 and Want to Sell My Insurance Agency
The highly anticipated day has finally come: you are getting ready to retire. After spending 30+ years working in your insurance agency, you have made the difficult decision that it is time to sell the agency and step down. Hopefully, you have been running your business over the years as if you were going to […]
New Year, New Opportunity to Focus on the Top 5 Areas that will Improve the Value of Your Agency
As the calendar turns from 2023 to 2024, many of us choose to partake in the age-old tradition of creating New Year’s Resolutions. In honor of that tradition, we have created the top 5 opportunities to improve your agency value as you solidify your plans and goals for 2024. 1. Revenue Growth YOY revenue growth […]
Are M&A Transactions Really Slowing Down?
Despite what the industry trade publications are sharing, our data does not reflect a slowdown in agency M&A transactions in 2023. Through October 2023, our data shows another year of record level M&A transactions with the highest number of transactions typically taking place in Q4. Our data tracks both the publicly reported and silent transactions […]
Is There an Optimal Age to Sell Your Insurance Agency?
It is hard to say, however, based on our analysis, we believe the optimal age is 58. Whether you are planning to perpetuate internally or sell externally, it is inevitable that you are going to sell your ownership at some point. In this article we explore whether there is an optimal age to transition ownership […]
The McKinsey Report – 10 Years Later… What Actually Happened
It has been 10 years since McKinsey published The Agent of the Future: The Evolution of Property and Casualty Insurance Distribution Report. In that report, McKinsey predicted a bleak future for the local insurance agent, which translated into another doom and gloom message for independent insurance agents (IAs). As soon as the report was published, […]
Has Your Agency Value Peaked?
Is this a question you have found yourself asking? If so, we will explore what to do next. First, let’s start with the evaluation process of determining whether your agency value has peaked. For me, this question arose when I was meeting with an agency owner that was sharing that they had made the decision […]
5 Reasons to Use IA Valuations for an Insurance Agency Valuation
Getting a valuation of your insurance agency is an important decision and a tool to understanding the fair market value of what is likely your greatest financial asset. You can get a valuation from many sources. Each of those sources has a motive, experience, and credentials for providing the service. In this article, we will […]
The 6 Steps to Sell Your Insurance Agency
So, you’ve made the decision to sell your insurance agency. While reaching that decision is incredibly difficult, the next stages in the process do not get easier. Therefore, we are laying out the six steps that you should go through to plan, prepare, negotiate, and execute the transaction. 1. Independent Fair Market Valuation First, get […]