Accurately determining the value of an agency is a crucial step in creating a successful transaction in the insurance mergers and acquisitions process. Whether you are selling your agency after years in the business or expanding your book of business by acquiring another agency, ensuring an accurate valuation is crucial to obtaining the best value.
There are many variables to look at when considering an independent agency’s value, and no one right way to conduct valuations. Many companies offer quick valuations that look at a bare minimum of factors and can be calculated without ever talking to a real person—resulting in an estimation that can vary in its accuracy up to 20%, resulting in a leeway of thousands to tens of thousands of dollars. If you want to avoid the risk of paying 20% over or receiving 20% less than the fair price, contact us today.
At Insurance Mergers & Acquisitions Consultants (IMAC), our team has decades of experience in conducting valuations. As a result, our experts have an intuitive knowledge of the true market value of an agency that is second to none. An accurate valuation takes many factors into account—and we can tell when a valuation has been conducted without uncovering all the necessary information.
From tax returns and profit and loss statements to factors such as geographic location and market trends, the IMAC team leaves no stone unturned when it comes to preparing a valuation for independent agencies, wholesale brokerages, MGAs and MGUs, and more. In addition to looking at factors such as premium size, revenue and retention rate, our experts can draw on data gathered from years of successful transactions to better determine the fair market value of your independent insurance agency and ensure you receive maximum value during the transaction process.
If you are in need of a third-party agency valuation or cash flow analysis for a loan/purchase, Insurance Mergers & Acquisitions Consultants is here to help. Fill out the form below and one of our consultants will be in touch to walk you through the process, gather the relevant information and start your valuation.
Fill out the form below and one of our consultants will be in touch to walk you through the process, gather the relevant information and start your Succession and Continuity Planning.
