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 […]
Being in the Driver’s Seat
As an agency owner, when it comes time to sell your agency or internally perpetuate, you want to be in the driver’s seat during the process. Now, what exactly does “being in the driver’s seat” mean as an owner? Simply put, you are in control during the sale, you know your numbers, you’ve done the […]
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 […]
Factors that Affect Agency Value – Growth
There are over 25 factors that we review when placing a fair market value on an independent insurance agency, and annual revenue growth rate is one of the most important factors that affects an agency’s value. If you are reading this, it is quite likely that you are contemplating how to grow your agency in […]
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 […]