Read some of our Frequently Asked Questions and Answers below:

Agency Value is just 1.5-2.5x of commission revenue, so what does IA Valuations do differently?

This way of thinking is actually industry folklore at this point – there are up to 25 factors that go into the equation to get the accurate value of your agency. IA Valuations takes these factors into account to give you a more accurate picture of your value and risk factors affecting your agency. You wouldn’t use this way of thinking to value any of your other financial assets, so you shouldn’t use this method for your agency.

How do I know it’s the right time for my agency to get a valuation?

The best time to start planning was yesterday. If you’re not planning now, you’re already behind.

Don’t let that scare you – if you haven’t started yet, the best time to start is now!

There will always be a reason to put it off: you have other important business and personal things to attend to. But your agency is either your biggest or one of your biggest financial assets and we are encouraging you to make the time to protect it.

If now is genuinely not the right time for you, let us know when a better time is! We’re happy to schedule a time in the future to discuss this in more depth.

How much does it cost?

The cost varies based on several factors including: what state you operate in, the size of your agency, if you’re doing a new valuation vs. getting a renewal, leveraging our Agency Link offering, or just looking for consulting services. For the value it delivers, the cost is insignificant. We don’t just provide a number that your agency is worth, we also provide you with 15+ insights to help you learn how to grow and improve your value.

We priced this product to fit the market that we serve: small and mid-size agencies. Compared to other larger-scale options, this is by far the most affordable. On top of that, a valuation update is 40% less expensive.

The general expected cost is as follows:

  • $2,500 for an agency in the state of Ohio
  • $3,500 for an agency outside the state of Ohio
  • $1,500 for an agency getting a renewal valuation (within 2 years of your last valuation with IA Valuations)
  • Agency Link and Business Consulting engagement prices are determined based on your agency’s specific needs

*The price of your valuation is subject to change based on additional factors.*

I already have a buy-sell agreement in place. What additional value does this add to my agency?

When was the last time you had a valuation done for this agreement? What is the triggering mechanism for this agreement?

Have you considered an annual valuation to ensure you have an up to date and accurate value for the agency? You could potentially be leaving hundreds of thousands of dollars on the table if you just go by an old buy-sell agreement.

I already know the value of my organization, why would I get a valuation from IA Valuations?

How did you come up with this value and when was it last assessed? Do you know what external factors affect your valuation? What has your growth been like the past 3 years compared to the market?

All of these factors and more contribute to the actual value of your organization. The IA Valuations team takes 15+ risk factors into account when analyzing your organization to determine the most accurate value.

I’m not planning on selling my agency anytime soon, so I don’t need a valuation, do I?

Yes, you actually do!

Firstly: A valuation is not exclusively a tool to value your business prior to a sale. It’s a business planning tool. Of the agencies we’ve done a valuation for, the highest performing agencies use a valuation as an annual tool for year over year growth.

Secondly: You don’t know when an offer might present itself that you want to be prepared for. If an offer comes knocking on your door that you can’t refuse, you want to make sure you’re prepared and an annual valuation will keep you prepared.

Thirdly: You can always benefit from knowing this information. Knowing the value of your agency is a best practice business strategy.

Finally: As insurance agents, we are constantly telling our clients to prepare for unexpected circumstances. Getting a valuation is doing exactly that for your agency.

What information do you need from me in order to complete a valuation?

We will need the following information about your agency:

  • Financial information
  • Employee data
  • Ownership structure
  • Book of business account information

Our team will work with you or your accountant to collect this information and use it to help you further understand your business. We streamline this process as much as possible. We’ll send you or your accountant a checklist with all of the information we’ll need to get your valuation done. It should only take 4-5 hours to gather all of the information, and from that point we’ll help you operate more efficiently and effectively. We can also work incrementally if you don’t have all of this available at the start.

Why would I use IA Valuations instead of my accountant or advisor who normally does it for me?

One of our key differentiators from your local accountant or advisor is that we understand the nuances and complexity of this business. We work in this specific marketplace day in and day out, so we are able to provide more insights. We are specialists on this singular topic: valuing independent insurance agencies.

Additionally, our team of experts is highly trained and experienced. Both of our valuation analysts have their MBAs. Craig has his CVA designation (Certified Valuation Analyst) and Luke is working towards getting his certification. Jeff holds his JD, CIC, and CAE certifications. Our team has done over 200 valuations together and have experience with the different risk factors that can affect your agency’s value.