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 […]

Planting the Seeds for Your Agency’s Future to Bloom

Many agency owners are unsure of their exit plan, and many fail to take the time to consider their options as they are busy running their day-to-day agency operations. But, a time will come when they must decide whether they will sell externally to a third-party buyer or sell internally to family or key stakeholders. […]

Reliance on Contingent Commissions for Profitability

Contingent commissions first appeared in the 1960’s. As insurance companies cut the commissions paid on premiums, they offered an offset as a way for agents to make up for the lost commissions – with strings attached. Agents who met certain goals tied to premium volumes, and the profitability of the book of business, could earn […]

Running an Efficient Agency in the Fast-Paced Insurance Industry

In the ever-changing and post-COVID world, one key element that rings true for agency owners across the country is being efficient. But in reality – what does this entail and what do owners need to do to increase and streamline their agency efficiencies? In this article, you will read about areas where an agency could […]

More than 30% of Insurance Agencies Lack Employment Agreements

One of the factors that we consider when determining the risk of an agency is whether or not the agency has producer agreements and employment agreements in place. It is essential for agencies to have both non-competition and non-solicitation agreements in place with their employees during normal operations, and especially when going through an ownership […]

Three Vital Agency Factors to Integrate Today!

Over the course of the last five years, the team at IA Valuations has performed over 200 valuations for independent agencies. We have analyzed a wide variety of agencies, ranging from small agencies in rural areas to larger, more sophisticated agencies in major metropolitan areas. One thing that remains true from our experiences is that […]

The Misperception About Agency Values and Private Equity Buyers

The Private Equity (PE) infusion into the IA system is a fairly recent phenomenon that has created a fundamental realignment of the IA business model. It has also created an unprecedented amount of myths and misperceptions about agency values and selling options. 

Using an Agency Valuation as a Roadmap for Growth

Why Agency Owners should Utilize an Agency Valuation as a Business Planning Tool In today’s business climate, agency owners can no longer afford to use revenue multiples to understand agency value. The exact calculation of agency value requires a much deeper dive into the numbers, employees, and operation to get an accurate assessment of an […]