Our team has completed hundreds of valuations for insurance agency owners, buyers, and lenders across the country. Our expertise in determining the market value of small to mid-sized insurance brokerages is nearly unparalleled in the industry. Our advisors have assisted clients across the country in sales and acquisitions of retail and wholesale insurance agencies and brokerages, managing general agencies, and program administrators. These clients operate generalist and niche property, casualty, and benefits brokerages. Our activity in insurance broker M&A transactions gives us intimate knowledge of the marketplace and often the higher strategic/synergistic value of a client’s brokerage to specific acquirers.

Why would I need a valuation of my insurance agency?

There are many reasons why someone might seek an insurance agency valuation, but valuations are generally requested in support of one of the following:

• M&A transactions

• Buy/sell agreements

• Loans

• ESOP reporting

• Gift, estate, and income tax assessment

• Life insurance review

• Divorce, damage cases, shareholder disputes, and corporate dissolution

The initial questions to be answered:

• What is the purpose of the valuation?

• What assets are being valued?

• Who is the intended user of the report?

When it comes to valuation assignments, the assets being valued, purpose, and conditions affect the analysis and calculated value. It is sometimes difficult for clients to understand that there are different values of the business based on who and what the analysis is for. From a valuation perspective, the purpose drives the standard of value – whether fair market value, fair value, synergistic/strategic value, or liquidation value. Knowing the assets (e.g. stock, business, book of business) helps us to understand the complexity of the engagement. The intended user could be an owner, a buyer, or a bank, but we need to know who the client will be and who we will be interacting with through the assignment.

Once we understand the scope of the valuation, then we need to get some high-level specifics to provide an estimate for the engagement. We provide an online form for convenience:

Please click here to complete our brief form

What is my insurance agency worth?

With all that said, most agency owners that contact us want to know what their agency is worth - which typically means in a sale on the open market. These types of engagements represent 85% of our valuation assignments. We lean heavily on determining the value based on what comparable brokerages have sold for in the recent past, which we pull from our own proprietary database of complete agency sales and from those published by banks and other advisors. We perform a thorough analysis and provide our clients with a detailed report.

What do I need to provide for you to perform a valuation of my insurance agency?

While our valuation list, including the questionnaire, is proprietary, expect to need to pull together financial statements, tax returns, book of business reports from your management system (we have alternative options if this is not feasible), and a few carrier reports. It will take some effort on your part to put the information together. It is important that we get enough information so that we can fully understand the business and, therefore, more accurately value it. If you are considering selling your agency, then we will need the information before going to market so that we can prepare you for passing a buyer’s due diligence process.

What does your report look like?

At the completion of our analysis, our clients receive a very detailed report that includes:

• A summary of the company’s historic financial and operational data.

• Adjusted earnings calculations.

• A comparison of the company’s financial data to industry peers, benchmarking the company’s financial health.

• A qualitative assessment of the company’s attributes to its peers. This includes comparing the revenue trend, revenue concentration/diversity with carriers, customers and producers, carrier mix, marketing and sales processes, quality of the staff and producers, customer demographics, geographic market area, etc.

• A value analysis using a variety of income, market, and asset approaches (where applicable).

• A value range summary and final value.

Again, our transaction experience gives us a deep knowledge of insurance brokerage operations so our analysis is more thorough than many other valuation firms.

How do I get started?

You can either complete the contact form or just give us a call at (321) 255-1309. We look forward to hearing from you!