We are in the midst of the Olympic Games. For me, the best part of the games is the human interest stories surrounding many of the amateur athletes that have trained and sacrificed for years. I am often in awe of those athletes that come from humble to less than humble backgrounds that found a way to become great in their sport. I wonder what happens to those athletes after the games are over and their brief careers are finished. I just can’t imagine the training that was involved in order to win a medal in Synchronized Diving. It’s not like you can turn professional after the Olympics and earn a good living from the sport.
Choosing Rio – The Excitement!
Do any of us even remember the excitement when the games were first rewarded to Rio de Janeiro in October 2009 beating out Madrid Spain, Tokyo Japan and Chicago? The excitement in 2009 was contagious. Rio is known as a beautiful city and the Olympics would be making its first trip to South America. It was also during that time when golf made a big pitch to return as an Olympic event for the first time in over 100 years. The level of interest from the players was unanimous. They were excited about being part of a once in a lifetime opportunity to represent their country and to compete for a gold medal. The Olympics were going to be the equivalent of the fifth major tournament, except that it would only be held once every four years.
In addition, the Olympics were seen as a way to enhance the exposure of the sport around the world. It would certainly result in the growth of a game that was struggling to maintain its current level of activity. Nike just recently announced that it will no longer produce golf clubs or golf balls. It seems as though the shot in the arm was very much needed.
Something happened along the way. The Brazilian economy tumbled. Political unrest grew as the government built the infrastructure for the games while most Brazilians struggled financially, even within Rio. Stories started to spread about construction delays. The most troubling news started to come forward regarding unsafe and unhealthy conditions for many of the water sports. The Perfect Storm arose when the Zika virus became an epidemic. What could be worse than a virus that caused significant birth defects?
The games will go on. There seems to be less interest in the games both in terms of attendance at the less visible sporting venues and with TV viewership. However, the medals will get awarded and world records will be broken.
Where’s the Connection?
How in the world could I make a connection between the Olympics, Golf and Insurance Agency Sales? I would like to compare the market for insurance agency sales to the excitement back in 2009 when the Olympics were awarded to Rio and golf became an Olympic sport. Just like the golfers in 2009, everybody seems to be interested in buying an insurance agency. The market is strong and the multiples have risen. We believe that the current market has created a false sense of security. When things are really good, people don’t see the risks. In 2009, who could have anticipated that Jason Day, Jordan Spieth, Dustin Johnson and Rory McIllroy would all decide not to compete in the Olympics? It makes me wonder what would happen if the top four most active buyers would suddenly vacate the insurance agency sales market?
Just like the Olympics, there would still be activity, but at what level? The purpose of this blog is not to scare anyone. We just want you to think about your own personal situation and whether you might be taking an undue risk by waiting another year to perpetuate your agency.
The Value of Your Agency
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