Valuation Drivers

Often when I talk to sellers they have a pre-conceived idea of what their business is worth; 2.5x revenue, 3x revenue, 8x earnings?

While convenient, thinking your firm is worth 2.5x revenue because you are a standard lines retail agency, is a large and unnecessary risk for business owners. Unless you’ve positioned yourself financially to the point where it doesn’t matter what price you get, you’re banking your retirement and your family’s future well-being on a guess.

Valuation, Exit PlanningChris McAteeJune 23, 2024INS Capital GroupValuation Drivers, Valuation, Selling, Exit Strategies

Planning for Your Business’ Future

Agency owners are often hesitant to discuss succession planning. Many are first-generation owners, uber-focused on building and running their business, and never slow down to plan how they will eventually transition their labor of love. Ideally, an owner should start planning 3-5 years prior to their desire to sell. Here are four questions to ponder as you think about transitioning your agency.

Exit Planning, Insurance Agency for Sale, ValuationChris McAteeFebruary 12, 2019

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