Estimating Value

Are you considering selling? Our team can provide you with a well-supported estimate of the value of your insurance agency or brokerage. Our advisors are experts at estimating the market value of all types of retail and wholesale insurance distribution businesses.

Every insurance agency and brokerage firm is unique. There is no universal valuation multiplier. A well-performed valuation of your insurance business requires more than just determining your EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) and assigning a multiple. Yes, your EBITDA and annual revenues are important, however, there are several value drivers, risk factors, and access to data from recently completed M&A transaction that are considered and weigh into estimating the market value of your insurance agency or brokerage firm, including:

• Organic Growth rates and opportunities
• Carrier appts. and relationships
• Location, size and profitability
• Strength, expertise, and longevity of management, producers, and support staff 
• Client retention rates and demographics
• Management systems, record-keeping
• Quality of the book of business
• Revenue mix / diversity (personal lines, commercial lines)
• Agreements / Contracts
• Marketing / Sales processes
• Agency / Brokerage brand and reputation

With the close guidance of an advisor, our team can help you estimate the value of your insurance agency or brokerage firm and propose recommendations to optimize that value.