Strategies

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.

Consider these five strategies if stress and burnout is forcing you to consider selling your agency.

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.