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.