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 […]
Red Flags that Weaken Agency Value
In the 200+ valuations that the IA Valuations team has performed, pinpointing and recognizing the red flags has become an essential step in the process to maximize an agency’s value. In general, agency owners are not aware of the internal factors that are stunting their growth and limiting overall value. In this article, we will […]
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 Power of Using an Agency Valuation as a Business Planning Tool
To know where you are going, you must first know where you are currently. The biggest step in business planning each year is having a clear metric for the agency’s success. We believe the most effective metric and report is to get an independent fair market valuation of your agency. The valuation report will give […]
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 […]
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 […]