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Agency Value and understanding what enhances value is the question many agents and brokers want to understand. unnamed-2.jpgThere are many variables that are taken into account when we value agencies. The short answer is that agencies are usually valued by a multiple of EBITDA (earnings before interest taxes depreciation and amortization). These are usually adjusted for one-time expenses or other expenses that will not continue after the agency is purchased. Buyers increase or decrease the multiples they are willing to pay based on the other factors that influence value below:

9 Factors That Indicate Value

1. Size of Agency by Revenue
2. Age of Management
3. Type of Business Lines offered
4. Owner involvement
5. Growth Rate
6. Profit Margin
7. Specialty Lines of Business
8. Concentrations
9. Geographic Location

For More

We have written white papers and Blogs on this topic and you can get details on how each of these factors influences the value of an agency by visiting clicking below to download whitepaper on “9 Factors That Indicate Value”.

Download the Whitepaper