Navigating Private Equity in the Independent Agent System: Strategic Insights for Agency Owners

The world of independent insurance agencies is undergoing transformational change transformational change as private equity (PE) continues to reshape the industry landscape. In a recent discussion, experts Jeff Smith and Jarod Steed from IA Valuations, along with Dan Girardi from Keystone Agency Partners and James Parker from BroadStreet Partners, explored how private equity’s influence is […]

How the Election Outcome will Impact Insurance Agency Values

Now that the election is over, it is time to analyze how the results will likely impact the independent agency system, specifically insurance agency values. Since 2016, agency values have steadily risen over the past 8 years, regardless of who occupied the White House or controlled Congress. This time period largely paralleled the hard market, […]

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 McKinsey Report – 10 Years Later… What Actually Happened

It has been 10 years since McKinsey published The Agent of the Future: The Evolution of Property and Casualty Insurance Distribution Report. In that report, McKinsey predicted a bleak future for the local insurance agent, which translated into another doom and gloom message for independent insurance agents (IAs). As soon as the report was published, […]

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 […]

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.