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 […]
Help! A Key Carrier is Cancelling my Contract – How will it Affect my Agency Value?
You just got one of your least favorite notices: one of your key carrier partners has given you the dreaded 180-day written notice to terminate your agency agreement. Whatever the reason given, it likely does not matter because it is damaging to your business on so many levels. It will impact your relationship with your […]
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, […]
The Camouflaged Contributor to Consolidation
Backdrop of Burnout It’s 7 in the morning, you crack open your email inbox to see if there are any work red-alerts before you take the kids to school. You get them to school and get to the office at 7:30 just so you hopefully have an hour of uninterrupted time to get your inbox […]
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 […]
The Ins and Outs of EBITDA and How to Leverage It
“I bought this book of business for two times 25 years ago; I was just going to do the same when I’m ready to retire.” This is one of the most common quips IA Valuations hears from the generation of agency owners getting ready to retire, and we fear it could leave much on the […]
Available Internal Perpetuation Options: The Agency Perpetuation Process Part 2
When it comes to planning for your agency’s internal perpetuation, there are numerous factors to consider, each requiring careful consideration and strategic discussion. This article, the second in this series by IA Valuations, will provide deeper insight into these elements and hopefully shed light on some of the complexities in these situations. Having a deeper […]
Help! Our Community Just Suffered a CAT, How Will This Affect My Agency Value?
It’s still early in the year and your community was just ravished by another convective storm, tornado, wildfire, mass flooding, or another widespread CAT loss. This story is becoming all too familiar across the country as natural weather events are happening at a higher rate. Over the last five years, 2019-2023, the National Centers for […]
Three Ways Your Accounting Practices Affect the Value of Your Insurance Agency
In an all too common and unfortunate situation, agency principals are often suddenly forced to step away from their agency due to death or disability. In this unplanned and unexpected scenario, there is no “break-glass-in-case-of-emergency” option, and it can be incredibly disruptive for the ongoing agency operations. At this critical moment, the CSRs and producers […]