2014 Negotiation S&P 
Sica Fletcher
APRIL 30, 2024
Selecting the Valuation Method Insurance agency valuations typically occur in one of the following four methodologies EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization): A calculation of an insurance agency's profitability calculated by subtracting taxes and operating expenses from its overall revenue.
Sica Fletcher
JUNE 11, 2024
Last year's data saw PE firms acting as buyers in ~90% of all transactions. As long as buyers face higher interest rates, sellers should expect a prolonged deal process contending with complex capital structures and equity-based negotiations. Whereas 2022 saw equity making up nearly 17.5% as of H1 2024.
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Sica Fletcher
APRIL 2, 2024
In deals with the highest earnout, business owners turn to a specialized M&A advisory firm to handle negotiations and oversee valuations. Founders Michael Fletcher and Al Sica are two of the industry's leading dealmakers who have advised on over $16 billion in insurance agency and brokerage transactions since 2014.
Sica Fletcher
JUNE 14, 2024
Factors Affecting EBITDA Because EBITDA refers to a general assessment of an insurance agency’s profitability, factors affecting it are those that relate to the agency's bottom line. S&P Global Data, PitchBook, PWC) or through M&A indexes provided by M&A advisory firms.
Sica Fletcher
SEPTEMBER 12, 2024
Changes in the Valuation Process Valuation is the first formal step in the M&A deal process, taking place once the seller has gathered all their preliminary documents and made any necessary changes to the company's internal structure to make it more profitable. Think Long-Term.
Sica Fletcher
MAY 15, 2024
In addition, third-party M&A institutions like S&P Global Data or Statista can provide more generalized data. Ask an Advisor Not only will an experienced M&A advisor have a better idea of how your insurance agency will be valued, they can also help you negotiate an even better payout when you take it to market.
Sica Fletcher
JULY 2, 2024
For example, knowing how much equity the buyer has utilized in previous deals can give you a good idea of what to expect when you finally sit down at the negotiating table. Keep a close eye on earnouts, post-closing employment contracts, and how well a buyer supports the seller following the finalized negotiations.
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