Sica Fletcher

MARCH 12, 2024

As one of the most active M&A firms in the insurance sector, we are frequently asked how insurance agency valuations work. This article discusses the fundamentals of insurance agency valuations, plus a few lesser-known factors that play into these processes before we give an overview of the insurance M&A market in 2024.

Valuation 52

Valuation Insurance M&A Profitability 52

Sica Fletcher

MAY 15, 2024

This article breaks down the question, “how much is my insurance agency worth” in further detail, but the table below provides a surface-level overview based on varying degrees of revenue and operating expense: How Much Is My Insurance Agency Worth: A Breakdown Answering the question, “how much is my insurance agency worth?”

Insurance 52

Insurance M&A S&P Valuation 52

Sica Fletcher

APRIL 11, 2024

This article examines the most common types of insurance agency sellers, which we break down into two distinct categories: the owners - agency CEOs and founders - and the partners - professionals in charge of overseeing a sale to ensure the best outcome. Urgent financial requirements (e.g., Market/Business Environment.

Insurance 52

Insurance Advisory M&A Investment Banking 52

Sica Fletcher

JUNE 14, 2024

Insurance agency owners who are considering the prospect of running an M&A deal process often have many concerns about the fate of their agencies, but the most common by far are those surrounding the agency’s purchase price at closing. We’ll also detail some of the factors affecting these calculations.

Insurance 52

Insurance Valuation M&A S&P 52

Sica Fletcher

JULY 1, 2024

Selling an insurance brokerage is not altogether that much different than selling an insurance agency or even an insurance company. specialized regulatory and licensing requirements that are different from those of insurance agencies. That being said, brokerage owners need to consider a.)

Insurance 52

Insurance M&A Advisory Funds 52

Focus Investment Banking

MARCH 10, 2025

Know the timeline After a sale, buyers often expect you to stay on for one to two years as an employee or consultant. Missing this detail could complicate or kill the deal, delay your plans, or reduce the sale price. Corporate structure Whether youre a C-Corp or S-Corp can affect taxes at sale. This derisks the org.

Investment 52

Investment Book-building Sale Business 52

Sica Fletcher

MARCH 26, 2024

This article outlines how to sell an insurance agency by chronological steps, with a quick overview of the process in the table immediately following. We also include some key insights we’ve gathered over several decades of selling insurance agencies. and EBITDA gives buyers a better sense of the agency's future profitability.

M&A 52

M&A Insurance Valuation Advisory 52

Peak Frameworks

MAY 2, 2024

Understanding the Basics of Credit Sales Credit sales are purchases in which the buyer delays providing the actual payment. Under a credit sale, the buyer agrees to pay the price of a good over a period of time.

Sale 52

Sale Accountant Financial Statement Business 52

IBG

SEPTEMBER 11, 2024

In most business sales, the purchase price is largely based on some multiple of the subject company’s net revenues and adjusted earning capacity. The emphasis here is on profit “add-backs” – i.e., discretionary or peculiar expenditures that can be added back to the profits of the business.

Sale 52

Sale Business Financial Statement Profitability 52

Wall Street Mojo

FEBRUARY 8, 2024

Such expenses are often associated with medical insurance, which does not come under reimbursable once. Table of contents Out Of Pocket Expense Meaning Out Of Pocket Expense Explained What Are Health Insurance Out-Of-Pocket Expenses? What Are Health Insurance Out-Of-Pocket Expenses?

Insurance 98

Insurance Medical Financial Modeling Financial Models 98

Sica Fletcher

MARCH 26, 2020

Many of our clients have asked us about the impact on insurance brokerage M&A of the pandemic and the resultant containment efforts. The Largest Strategic Players Tell Us Full Steam Ahead – The major strategic acquirors have informed us that they plan to continue to aggressively pursue acquisitions of insurance brokers.

Insurance 52

Insurance M&A Broker Economics 52

How2Exit

MAY 8, 2023

-Ron Concept 1: Explore Business Acquisitions and Mergers Business acquisitions and mergers are an increasingly popular way for entrepreneurs to grow their businesses and increase their profits. Business acquisitions and mergers can be a great way for entrepreneurs to expand their businesses and increase their profits.

Mergers and Acquisitions 130

Mergers and Acquisitions Profitability Mergers Business 130

Razorpay

AUGUST 20, 2023

They are set for a specific span of time and might impact profitability if not managed well. The amount tends to be recurring regardless of sales or production. The amount tends to be recurring regardless of sales or production. Fixed costs are subtracted from the total revenue to determine the profit.

Business 52

Business Profitability Sale Utilities 52

Focus Investment Banking

SEPTEMBER 2, 2024

Correct application of the appropriate revenue recognition policy is important, as is relevant cost accounting, so that profitability is depicted accurately. Companies with poor safety ratings will have higher insurance costs and more significant employee impacts, and substandard ratings are a big red flag for buyers.

Sale 52

Sale Business Investment IT 52

Sun Acquisitions

MAY 13, 2022

Great, now that you know when to sell a small business, let’s talk about timing the sale. How to Time the Sale of Your Business. Timing is everything when seeking to maximize business sale value. When you’ve got a solid client base and can prove its profitability to prospective buyers. Increase profits.

Business 98

Business Mergers and Acquisitions M&A Sale 98

Wall Street Mojo

JANUARY 17, 2024

This differentiation helps identify a company’s profitability Profitability Profitability refers to a company's ability to generate revenue and maximize profit above its expenditure and operational costs. It is measured using specific ratios such as gross profit margin, EBITDA, and net profit margin.

Accountant 98

Accountant Finance Finance Profitability 98

IBG

JANUARY 31, 2023

If you have been through a business purchase or sale, you have likely experienced the unique tension and strife common to that phase of the deal known as “due diligence.” While it takes work, due diligence helps squeeze risk out of a sale, protecting the buyer and the seller.

Sale 52

Sale Business M&A Mergers and Acquisitions 52

How2Exit

MARCH 30, 2023

It is important to focus on more than just the monetary value of the sale. This is something that Jonathan Braybrand, an author, entrepreneur, and expert in the field of advising business owners on the sale of their companies, understands well. If the market is robust, then it is a good time to consider selling the business.

Business 130

Business Sale M&A Mergers and Acquisitions 130

How2Exit

MAY 29, 2023

He says that companies should focus on creating value, which starts with sales. This organization is dedicated to helping companies create value, not just individual sales. Business owners need to consider how their employees will be taken care of after the sale. Promotion is a key factor in maximizing business value.

Business 130

Business Sale IT Book-building 130

Sun Acquisitions

MARCH 8, 2022

Enterprise Insurance Policies. Internal Profit & Loss Statements (dating back two to three years). Every document – financials, customer records, vendor contracts, sales reports, expense reports, tax returns – will be carefully examined. Business’ Professional Certificates. Existing Vendor/Client Contracts. Letter of Intent.

Business 98

Business M&A Finance Finance 98

Wall Street Mojo

JANUARY 17, 2024

Tax Benefit Explained Forms Examples Eligibility For Family Tax Benefit Health Insurance Tax Benefit Married Vs Single Recommended Articles Tax Benefit Explained A tax benefit refers to the advantages or savings a company gains from utilizing various tax provisions and deductions provided by tax regulations. read more to $650,000.

Financial Modeling 98

Financial Modeling Financial Models Insurance Business 98

Peak Frameworks

NOVEMBER 27, 2023

The break-even point is a crucial financial milestone that signifies the point at which a company's total revenues equal its total expenses, resulting in neither profit nor loss. In simpler terms, it's the point where a business covers all its costs, and any additional sales or revenue generated beyond this point contributes to profit.

Profitability 52

Profitability Corporate Finance Finance Finance 52

Lake Country Advisors

AUGUST 9, 2024

The goal is not just to find a buyer but to maximize the value of your hard work and investment, leading to a prosperous sale. Preparing Your Manufacturing Business for Sale Conducting a comprehensive business valuation is essential in preparing your business for sale.

Manufacturing 59

Manufacturing Business Sale Negotiation 59

Peak Frameworks

JULY 19, 2023

They include rent, insurance, and salaries of permanent staff. An e-commerce company like Amazon could be a good example, which pays for server space (fixed cost) but also experiences variable costs as website traffic and sales increase. These costs directly influence pricing decisions and profitability.

Business 52

Business Profitability Management Utilities 52

Lake Country Advisors

JULY 25, 2024

These matters are pertinent to a business sale, as Harvard Business Review estimates that 70% to 90% of deals fail to achieve desired results, often because of inadequate due diligence. This requires you to: Review marketing strategies and sales performance. Review insurance coverage. Analyze tax returns and liabilities.

Business 104

Business Mergers and Acquisitions Negotiation Risk Assessment 104

Razorpay

MAY 30, 2023

By providing accurate information on the cost of production and operations, cost accounting helps businesses optimize their resources, improve profitability, and stay competitive in the market. Some examples of fixed costs include rent, salaries, property taxes, insurance, and depreciation of fixed assets.

Accountant 52

Accountant Profitability Business Utilities 52

Software Equity Group

FEBRUARY 26, 2024

EBITDA (Cash-Adjusted): Earnings Before Interest, Taxes, Depreciation & Amortization You are likely familiar with EBITDA (earnings before interest, taxes, depreciation, and amortization), used to measure profitability. R40: Rule of 40% Software companies use the Rule of 40 to evaluate overall growth and profitability.

Discounted Cash Flow 52

Discounted Cash Flow M&A Profitability S&P 52

Lake Country Advisors

OCTOBER 27, 2023

The driving force behind this appraisal often relates to potential sale intentions, insurance coverage, or taxation requirements. Financial Performance Evaluation Financial metrics, including the company’s revenue, profits, and cash flow trends, form the backbone of an appraisal.

Valuation 52

Valuation Business Mergers and Acquisitions Insurance 52

Sun Acquisitions

NOVEMBER 29, 2022

Whatever your motivation for selling, we’re sure you want a seamless transition in which you walk away with a decent profit from the sale. Future profit margins. No systems, no sales; a strong profit base requires a carefully attuned system for your technicians to follow. Client base. Annual Maintenance contracts.

Business 52

Business Valuation Broker Book-building 52

Focus Investment Banking

JULY 10, 2023

The new edition of my book, “ Buy, Build, Fix, Sell: Mergers & Acquisitions for Tire & Service Dealers ,” is out and available for sale at Amazon.com. Second, they developed discount programs with uniform vendors, parts houses and even insurance companies as value-added benefits to their members.

Mergers and Acquisitions 52

Mergers and Acquisitions Education Profitability Insurance 52

How2Exit

MARCH 24, 2023

To do this, he obtained his insurance and securities licenses and started helping developers raise money. He realized that if he could buy enough companies, he could exit several of them a year and receive a large amount of profit in one go. He wanted to be able to invest in larger projects and help developers raise money.

M&A 130

M&A Business Mergers and Acquisitions Investors 130

RKJ Partners

AUGUST 6, 2017

It is imperative to maintain confidentiality throughout the sale process and to take measures that will guard against competitors, employees, vendors and customers learning of an impending sale. In general, it can take from 3 to 18 months to complete a business sale, with the most common range of 6 to 12 months.

M&A 40

M&A Sale Negotiation Investment Banking 40

Wizenius

MARCH 25, 2023

In other words, Adjusted EBITDA is used to illustrate the true underlying profitability of the business. billion provision for long-term care insurance claims, which was excluded from its adjusted EBITDA. reported net sales of $274.5 GE: In 2017, GE made a $6.2 In its 2021 annual report, Apple Inc.

Insurance 52

Insurance IT Investment Shares 52

Sun Acquisitions

JANUARY 17, 2023

As a seller, brokers have the expertise and experience to help you find potential buyers, negotiate terms of the sale, and handle all the various paperwork that’s involved. Such entities also typically sell faster than companies that fail to show a strong financial track record and future profitability. 4. Sell to your Employees.

Healthcare 52

Healthcare Business Broker Private Equity 52

Focus Investment Banking

JANUARY 10, 2025

And in a lot of cases, these are very profitable services, but that specialization is going to lead to massive efficiencies throughout your organization. There’s also continued insurance challenges and a whole lot more. On average, I’m seeing these shops are 50 to 100% more profitable than their generalist counterparts.

Private Equity 52

Private Equity Mergers and Acquisitions M&A Equities 52

Sun Acquisitions

MARCH 29, 2024

Negotiate favorable terms that align with your business’s cash flow and profitability. A well-thought-out growth strategy can enhance the business’s profitability and, consequently, your ability to meet the financing terms. This could involve risk insurance, contingency plans, or renegotiating the financing terms.

Mergers and Acquisitions 64

Mergers and Acquisitions Finance Finance Acquisitions 64

Sun Acquisitions

JUNE 15, 2022

Step 1: Determine Your Motives for the Business Sale. The worst rationale you can give for selling is because the business is no longer profitable and it is in distress. 50% of all business for sale transactions expire during the due diligence process. Why are you selling your business? What’s your motive ?

Business 52

Business Broker M&A Sale 52