Appraisals of Fair Market Value
Know your worth.
Appraisals of Fair Market Value are essential for a wide variety of agency functions and transactions, including internal stock transfers, equity-related compensation plans, employee stock ownership plans (ESOPs), valuations for estate tax determination, corporate performance evaluation, mergers and acquisitions, and perpetuation planning.
Too often independent agencies seek to assess their value using potentially dated standards, such as 1½ times annual revenue. But these standards may be inaccurate and never tell the whole story. You need an experienced appraiser that is familiar with the unique characteristics of the insurance agency business and its changing environment. Reagan Consulting has appraised hundreds of agencies, providing each with a complete, accurate picture of the business and the factors that drive their value.
When conducting an agency or broker appraisal, we use, among other tools, the Reagan Value Index (RVI), a proprietary database of valuation metrics for a select group of firms we appraise on an annual basis. Modeled after the Dow Jones Industrial Average, the RVI provides the only private insurance agency valuation metrics system in the marketplace today.
We also can deliver a more qualitative evaluation of your agency, providing you with an objective analysis of the firm’s strengths and weaknesses and its position relative to industry norms. We’ve identified these benchmarks as vital in evaluating and improving overall performance, and our experience and knowledge puts us in a unique position to help you get the most out of them.
The accuracy of our appraisals is continually validated through our active involvement in mergers, acquisitions and perpetuation planning. Representing both buyers and sellers, advising firms on internal stock transfers and leading the Best Practices initiative keeps us "in the loop" on the often volatile factors driving agency values.