Clarity today creates leverage tomorrow, especially as M&A activity begins to shift again.
If you want a clear picture of your agency’s value, there is no better time to get grounded than now.
Most insurance agency transactions are based on trailing twelve months performance. That makes year-end financials the cleanest, most reliable snapshot of how an agency is truly performing. They remove much of the noise that can creep in during the year and give owners an accurate baseline for decision-making.
Year-end numbers allow for a true year-over-year comparison. When you cross into a new calendar year, things can easily get distorted. Revenue may be counted twice or missed altogether because of changes in billing cycles, shifts in client premium levels, or timing differences in commission reporting. Those inconsistencies create confusion and weaken your negotiating position later.
Year-end data also aligns with how most agencies file their tax returns, which makes it easier to validate and support during due diligence. While adjustments may still be required, particularly for agency-billed accounts or one-time items, year-end financials are generally the most defensible starting point when evaluating value.
This is why we consistently encourage agency owners to understand where they stand before a buyer ever calls. Clarity creates confidence, and confidence creates leverage.
There is another reason this timing matters.
Over the past year, many larger agencies focused on consolidation rather than acquisition. Public brokers and private equity-backed platforms absorbed earlier roll-ups that lacked operational efficiency. That work takes time, and in many cases it slowed new deal activity.
At the same time, higher interest rates and recapitalization challenges caused many buyers to pause. The result was one of the slowest years in insurance agency M&A in quite some time.
That environment is beginning to change.
Agencies that consolidated last year are now under pressure to grow. Investors expect results. Capital is becoming more active. New buyers are entering the market, including former agency owners whose non-competes have expired and who bring real operational experience to the table.
All of this points to a gradual increase in activity. Not a frenzy, but a meaningful shift.
For agency owners, this creates opportunity. But only if you are prepared.
Understanding your current value is not about deciding to sell tomorrow. It is about knowing your options. Whether you are considering growth through acquisition, a partnership, or a future exit, the strongest position is one built on facts, not assumptions.
At Sukay and Associates, we help agency owners evaluate their true position using real financial data, operational insight, and market perspective. Our Legacy and Market Readiness Blueprint is designed to answer three fundamental questions:
What is your agency worth today? How prepared are you for the options in front of you? What are your smartest next moves based on your goals?
The agencies that will have the most control as M&A activity increases are the ones that take the time now to understand their numbers, their structure, and their readiness.
If you wait until a buyer shows up, you are reacting. If you prepare ahead of time, you are choosing.
That difference matters.
If you want to learn more about how we approach readiness and valuation, visit our website or contact me directly to start a confidential conversation and understand where you stand today.