Owning an independent insurance agency it seems like planning for the future is never a priority. This includes having an insurance agency perpetuation plan. Having a plan in place ensures that if something happens to the current shareholders that the agency can continue to operate and maintain its value. One rule the shareholders should follow is, “Always run your agency as if you are going to sell it tomorrow”.
Streamline Processes With Modern Technology of Best Practices
One of the problems agency owners have is that they wear many hats.. Technology is a very daunting task and is usually one of the hats that gets delegated to someone in the agency that has just a bit more knowledge than everyone else. The other issue with technology is that the cost is something that many smaller agencies can’t afford. The result is that the smaller agencies find themselves not able to deliver the same level of service as the competition. Keeping up with Technology is something that many agencies will need to do in the future if they want to remain independent.
Maintain Strong Financials
Maintaining a strong financial allows an agency to remain competitive. An agency that continually shows steady growth in both revenue and profit will be rewarded when they decide to perpetuate. Re-investing in the company and exploring new ways to support your staff as they continue to grow into successful insurance professionals.
Build A Successful Team
A successful team includes an even mix of both new employees and seasoned professionals who can work together to achieve a consistent amount of growth each year. Create a work environment that encourages all employees to want to expand beyond their boundaries. You want to foster the idea that this is their opportunity and they need to make it their own. A successful team involves many employees at different stages of growth who are willing to work together and learn from one another during the process.
Insurance Agency and Perpetuation Plan Based on Your Estimated Value
Agency Shareholders should always know what their agency is worth. Just because your competition sold for an 8 multiple of EBITDA does not mean you can just take that multiple and apply it to your business. The concept of multiples is confusing at best and intentionally inflated at worst.
(See our explanation on Multiples)
Agency owners should never compare their business to any other agency because even though you might believe you have the same type of business there could be one significant difference that could alter your agency’s value when compared to your competition. There is no reason that you should guess when there are professionals like Sukay & Associates available that are willing to value your business for Free.
At Sukay & Associates, we believe it is our responsibility to make sure that you totally understand the value of your business. We started this company with one guiding principle, “We will never do anything that is not in the best interest of our clients.!” We believe that if we want you as a client we need to prove our value by making sure that you know your REAL value.
As a firm, we believe answering the question “How much is my agency worth?” is part of our responsibility and the foundation of a great working relationship – even if that is further in the future. Because of this we, unlike most firms, offer free insurance agency valuations for those who qualify. Click below to apply.
