Tag: Independent Agencies

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 […]

The Missing Ingredient in Local Agency Acquisition Offers – Equity

The greatest competitive advantage for local, privately held retail agencies (local agencies) is becoming their greatest competitive disadvantage in the rapid consolidating IA system. As we have discussed in previous articles, mergers and acquisitions (M&A) are at record levels without any sign of significantly slowing (average of 551 M&A transactions annually in the past 10 […]

Is it Time for Your Annual Agency Tax Check Up?

As we near the dreaded Tax Day, we urge all independent agency owners to take some time to review your corporate structure with your tax expert. A review will determine if you are best positioned to reduce your yearly tax burden, and to better understand the tax liability you will face when you eventually sell […]

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 […]

How Local Agents Can Compete with Private Equity for Acquisition Opportunities

Almost every M&A article on the IA system written in the past 10 years typically focuses on the increasing number of transactions Private Equity (PE) is responsible for. It is undeniable that PE transactions are increasing. The latest studies estimate that PE accounted for 77% of the M&A transactions in 2022.  

However, what every M&A article on the IA system fails to capture and discuss is the amount of local, privately held retail agency to retail agency transactions happen every year.

Five Things to Consider When Selling Your Agency​

The process of selling your agency can be a long and winding road. As an agency owner, your agency has become a major part of your identity and is synonymous with your name in your community (often times the agency is the owner’s name). You have spent countless hours and energy building your business, serving your clients and engaging with your company […]

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 […]