Selling an Agency

The recently enacted tariffs have introduced uncertainty into the insurance industry, including the agency mergers & acquisitions market. Here are three areas to monitor over the coming months.

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?

​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 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).

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.

While getting a valuation before you sell is critically important, waiting until the last minute may be too late to implement the changes and overcome weaknesses to significantly improve value.

​On this episode of Agency Nation Radio, Jessica Mulder, operations manager of Perspective Insurance in Sioux Center, Iowa, reflects on how she played a role in the purchase of three agencies in one year.

Though it may be impossible to control the external economic environment, it is possible to control whether or not your agency grows—and if that growth contributes to the top or bottom line.

By: Agency Nation At the beginning of her career, Kristine Rushing, who is now co-owner and risk consultant at Rushing Insurance in Pensacola, Florida, interviewed with a bank and an insurance agency. The insurance agency was the first one to offer her a job—and so her insurance career began. “When I was able to take…