Agency Focus

Over the past several years I have worked with many agency owners across the country helping them understand the value of their agencies. It is some of the most rewarding work I have ever done, and I have learned a lot about agencies and agency owners as a result of this work.

It is no secret that merger and acquisition (M&A) activity in the independent agency space is at an all-time high. While it took a brief pause in the first quarter of 2020, it has been going strong through the end of 2020 and continues at a record pace in 2021.

For many agencies, their growth strategy includes an acquisition component, and the current conditions in the insurance marketplace make growth by acquisition strategy very achievable. It is no secret that over half of the current agency owners are approaching retirement age. When you couple that with low-interest rates, the anticipated changes in taxes, and the presence of private equity driving the multiples for agencies up, for many agency owners there may never be a better time to sell their agency.