Private Equity’s Growing Influence in the Independent Insurance Agency Industry

In a recent conversation among industry experts, Jeff Smith and Jarod Steed from IA Valuations, Dan Girardi from Keystone Agency Partners, and James Parker from BroadStreet Partners, the group discussed the evolving role of private equity (PE) in the independent insurance agency sector. This insightful exchange provided a deep dive into how private equity’s involvement […]

What is Private Equity in the Independent Agency System?

In today’s insurance agent marketplace, the phrase “Private Equity” or PE is quite the buzz phrase. The mention of PE causes a wide range of reactions from agency owners. Some owners seek to sell their agencies to PE backed brokers and others are avoiding it like the plague. No matter where you fall on the […]

Navigating the Complexities of Insurance Agency Acquisitions: Insights from Industry Leaders

The landscape of agency acquisitions is as challenging as it is rewarding, requiring a delicate balance between strategic alignment, financial prudence, and cultural fit. IA Valuations’ CEO, Jeff Smith, and Director of Business Planning and Valuations, Craig Niess, led a conversation with industry experts Missy Kahl (Bickle Insurance), Vaughn Troyer (Hummel Group), and Rob Smith […]

2024 State of Independent Insurance Agency Valuations – IA Valuations Webinar Recap

IA Valuations recently held a webinar discussing 2024 Independent Agency M&A Trends and Predictions. IA Valuations’ CEO, Jeff Smith, and Director of Business Planning and Valuations, Craig Niess, hosted three panelists: Mike Wagar from Westfield Bank, Dan Girardi from Keystone Agency Partners, and Rob Smith from Fideles Advisors. These panelists were selected due to their […]

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 […]

How Does Consolidation in the IA System Affect the Value of Your Agency?

It is undeniable that the independent agency system is undergoing massive consolidation. In what we have dubbed “the greatest wealth transfer in the history of the independent agency system,” we are experiencing a realignment of the IA business model. Over the past 10 years, according to Optis Partners, the IA system has experienced a 250% […]

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 […]

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.

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.