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.

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Valuation Insurance M&A Profitability 52

Sica Fletcher

MARCH 14, 2024

Disclaimer: The article below contains a quick and easy method for calculating the ballpark value of an insurance agency using standardized market information. Readers should note that the actual value of your insurance agency may vary considerably from what this estimate might provide.

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Insurance Valuation M&A Consulting 52

Sica Fletcher

SEPTEMBER 17, 2024

When insurance agency sellers have already met with prospective buyers, they may have been offered a valuation based on their “adjusted EBITDA.” The following article provides a brief overview of EBITDA and adjusted EBITDA valuations for insurance agencies. What Is EBITDA? What Is Adjusted EBITDA?

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Insurance Valuation Profitability M&A 52

Sica Fletcher

APRIL 30, 2024

This article presents a step-by-step guide on how to value an insurance agency - both in the sense of how a valuation agency/M&A advisor goes about valuation, and also in terms of what insurance agency owners can do to maximize their valuation prior to running an M&A deal.

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Insurance Valuation M&A S&P 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.

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Insurance Valuation M&A S&P 52

Sica Fletcher

APRIL 2, 2024

The following report examines the health and outlook for insurance M&A deals in 2024. We base this research on several key findings in our proprietary SF database, which observes and records data from the top ~400 insurance M&A buyers. Agency vs. Company: Which Is The Better Insurance M&A Deal?

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M&A Insurance S&P Broker 52

Sica Fletcher

SEPTEMBER 12, 2024

Although insurance agencies are not always family affairs, the 2024 insurance landscape reveals that between 50% and 70% of agencies are family-owned. The valuation process has a few additional considerations when selling a family insurance agency. Family-specific financial arrangements.

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Insurance Valuation M&A S&P 52

Sica Fletcher

SEPTEMBER 3, 2024

The following article details the process of selling an insurance agency book of business in 2024, including deviations from the process of selling an agency, the valuation process, and common payout structures. Selling an insurance agency book of business has a few advantages over selling the agency in total. Policy Assignment.

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Insurance Business Valuation M&A 52

Sica Fletcher

MAY 8, 2024

Quite a few articles already detail the process of “how” to sell an insurance agency (you can read our article on that subject here ), but very few get to the bare bones of “why.” If you’re asking, “ should I sell my insurance agency,” the three big questions you must answer first are: Why Do I Want To Sell?

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Insurance M&A Valuation Advisory 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?”

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Insurance S&P M&A Valuation 52

Sica Fletcher

OCTOBER 16, 2024

The following article examines valuation multiples for registered investment advisor (RIA) firms as of 2024, based on data gathered from our SF Index and available third-party sources. How these client demographics affect RIA valuations really depends on what the buyer is looking for, as indicated by the table below.

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Valuation Mergers and Acquisitions M&A Insurance 52

Sica Fletcher

MARCH 8, 2024

Having advised on a record number of insurance agency M&A transactions, we have used our unusually large dataset in tandem with access to third-party M&A databases to provide up-to-date averages of EBITDA multiples for insurance brokerages in 2024. What Is Affecting Insurance Agency EBITDA Multiples?

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Insurance M&A S&P Valuation 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. Valuation is a process in and of itself.

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M&A Insurance Valuation Advisory 52

Lake Country Advisors

OCTOBER 27, 2023

At the core of the debate of business appraisal vs business valuation, both approaches aim to determine a company’s worth. So, what’s the difference between a business appraisal and a business valuation? Approaches to Business Valuation To achieve a comprehensive business valuation, professionals employ a range of methods.

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Valuation Business Mergers and Acquisitions Insurance 52

Sica Fletcher

JUNE 20, 2024

The insurance M&A market in 2024 is significantly more complex now than it was 20 years ago. However, this report seeks to make sense of these qualities as a whole to provide an overview of the 2024 insurance M&A market. The table of contents below offers quick links for readers seeking specific information in later sections.

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M&A Insurance Valuation Equities 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.

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Insurance Advisory M&A Investment Banking 52

Global Newswire by Notified: M&A

OCTOBER 16, 2024

Car insurance is a crucial sector belonging to the insurance sector. It is notably impacted by regulatory needs, growing vehicle ownership, and increasing awareness about the benefits of insurance coverage. Car insurance is a crucial sector belonging to the insurance sector.

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Insurance Valuation IT 40

Sica Fletcher

JULY 31, 2024

The 2024 insurance M&A market has changed substantially from just a few years ago, with potentially staggering implications for the future of insurance M&A transactions. Insurance M&A Transactions in 2024 The insurance M&A transactions we have observed thus far in 2024 indicate larger trends in the sector.

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M&A Insurance Debt Equities 52

Sica Fletcher

MAY 29, 2024

M&A transactions for insurance companies are part of a robust but complicated market that requires ingesting a great deal of data in order to fully understand. While insurance M&A did see slight dips in deal volume and average value (Fig.2) While insurance M&A did see slight dips in deal volume and average value (Fig.2)

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M&A Insurance Equities S&P 52

Sica Fletcher

DECEMBER 13, 2023

Since the dramatic uptick in interest rates last year, a number of articles appeared in the press arguing that the insurance brokerage M&A market would slow due to higher interest rates. This prediction that the market would slow was simply incorrect. The full article can be downloaded here.

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M&A Insurance Valuation 52

Sica Fletcher

JULY 23, 2024

In it, we provide readers with a quick and simple overview of the current insurance brokerage M&A market , after which we discuss several macroeconomic and industry-specific factors that could drastically affect transactions in the next six months. The market is already highly competitive, but it’s also limited to what buyers can afford.

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M&A Insurance S&P Valuation 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.)

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Insurance M&A Advisory Funds 52

Sica Fletcher

JULY 11, 2024

The following report details insurance brokerage M&A multiple averages for H1 2024. Our research team averaged the information using data from our Sica | Fletcher index, which monitors approximately 70% of insurance sector transactions. Because several kinds of insurance are legally required (e.g.,

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M&A Insurance Debt Equities 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?

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Insurance Medical Financial Modeling Financial Models 98

Sica Fletcher

AUGUST 6, 2024

Our research team’s latest report compares the top insurance agency investment banks of 2024. Insurance Agency Investment Banks: Investment banks that specialize in the insurance industry. Insurance Agency Investment Banks: Investment banks that specialize in the insurance industry.

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Investment Banking Insurance Bank Banking 52

McCombie Group

OCTOBER 11, 2024

For nearly two decades, private equity (PE) has been a transformative force in the insurance agency sector, driving consolidation and increasing valuations. Currently, 72% of all agency transactions involve private equity buyers.

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M&A Insurance Private Equity Valuation 40

Mergers and Inquisitions

MAY 3, 2023

To be fair, in some industries – like commercial banks and insurance within FIG – the DDM is a core valuation methodology. And Equity Real Estate Investment Trusts (REITs) must distribute almost all their Net Income, so the DDM can work well in REIT valuations. But outside of those, its status is murkier.

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Valuation DCF Debt Financial Modeling 64

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.

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Insurance M&A Broker Economics 52

Cooley M&A

DECEMBER 3, 2019

Over the last decade the use of R&W insurance in merger and acquisition transactions has grown exponentially. From 2008 to 2018, the total R&W policies bound per year in North America rose from 40 deals, providing $541 million of coverage to 1500+ R&W insurance transactions, providing aggregate coverage of $38.6 Advantages.

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Insurance Underwriting Mergers and Acquisitions M&A 40

How2Exit

OCTOBER 14, 2024

The importance of clean data rooms, strategic earn-out agreements, and the role of rep and warranty insurance in private transactions forms the crux of their discussion. Role of Advisors : Engaging experienced advisors, investment bankers, and accountants can significantly smoothen the M&A process and enhance deal valuation.

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Profitability Mergers and Acquisitions M&A Negotiation 130

How2Exit

MARCH 12, 2023

Concept 3: Document and insure Ownership One of the most important elements of planning for sale is to document and insure ownership. In addition to documenting ownership, it is also important to insure ownership. This means that it is important to have a clear understanding of the business and the contracts that are in place.

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M&A Business Insurance Mergers and Acquisitions 130

Accenture Capital Markets

SEPTEMBER 5, 2023

In large banks and insurers, individual departments are usually large enough to justify creating their own support teams. Institutional investors usually have narrower operations than banks or insurers. Cross-departmental collaboration. Effective process selection. Business-led, integrated approach.

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Investors Financial Services Insurance Investment 88

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. Corporate Tax Examples

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Financial Modeling Financial Models Insurance Business 98

Sica Fletcher

OCTOBER 23, 2024

Who Performs A Valuation? RIA valuations are typically performed by one of three parties: The M&A Advisor A Third-Party Specialist The Seller Themselves Although many sellers attempt to perform their own valuations, we strongly recommend against this.

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Valuation M&A Insurance Advisory 52

Focus Investment Banking

MARCH 10, 2025

Clearly break out expenses (insurance broken out by auto, health; salaries broken out by owner, employee; and so on.) These are called addbacks, and are extremely important to valuation. Keep Growth Alive Even after years of continued growth, flat performance prior to and during an exit generally results in a lower valuation.

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Investment Book-building Sale Business 52

Cooley M&A

AUGUST 30, 2019

Often discussed in the context of bridging a valuation gap, an “earn-out” can be a (seemingly) attractive solution for parties who have reached agreement on everything but the purchase price. Teachers Insurance and Annuity Association of America (TIIA ) , TIAA acquired Nuveen, a mutual fund and advisory firm, from Windy City for $6.25

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Valuation Mergers Advisory Insurance 40

Sun Acquisitions

JUNE 15, 2022

Business valuation, according to the Corporate Finance Institute , is the “process of determining the present value of a company or an asset.”. In this post, we’re going to answer why you need to conduct a business valuation, how you can determine your business value, and how to find the best business valuation specialists.

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Business Valuation Mergers and Acquisitions M&A 52