Agency Valuation

While no one enters marriage with the prospect of divorce, it happens and can wreak havoc on an agency both operationally and strategically.

Our industry has been witnessing intense consolidation for at least the last decade, but we have never seen this type of activity at the top of the market. Will these mega deals usher in a new era of deal-making?

By Scott Freiday In the highly competitive and evolving insurance landscape, independent agency owners face a unique set of challenges and myriad capital needs to sustain their growth. As we head into 2025, there is a greater sense of urgency for agencies to invest in technology and talent and make strategic mergers & acquisitions (M&A). The average…

By Alicia Chandler ​​The recent rate cuts by the Federal Reserve have prompted more agency owners to think about ways to grow their businesses. With the cost of borrowing starting to ease, many agency owners feel now may be the time to take a chance on new growth initiatives aided through debt financing. Not all lenders are…

​The landscape of agency acquisitions is as challenging as it is rewarding. To be successful, an acquisition requires a delicate balance between strategic alignment, financial prudence, cultural fit and more.

In 2022, Dew, then 20% owner of WinStar, learned that the other two owners would be retiring. She didn’t want to see the agency absorbed by the large buyers circling overhead and decided she would buy it herself—even if it meant mortgaging her house.

Like elections in the past, this one will not impact agency values—but fiscal policy could impact the portion owners take home.

In the market right now, prospective buyers are not determining the price they will pay for an agency based on revenue alone, but instead on earnings before interest, taxes, depreciation, and amortization (EBITDA).

Growing up in a family where insurance was a topic of conversation at the dinner table, Andrews’ future in insurance was written in the stars.

The increase in catastrophic events and higher loss ratios has the potential to significantly impact agencies’ profit sharing, revenue, carrier appointments and other valuation factors.