Valuations 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 the old industry norm of 1½ times annual revenue. These standards may be dangerously inaccurate and never tell the whole story. You need an experienced valuation analyst that is familiar with the unique characteristics of the insurance agency business and its changing environment. Reagan Consulting has valued hundreds of agencies, providing each with a complete, accurate picture of the business and the factors that drive value.

When conducting an agency or broker valuation, we use, among other tools, the Reagan Value Index (RVI), a proprietary database of valuation metrics for a select group of firms that we value on an annual basis.

We also can deliver a more qualitative assessment 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 benchmarks that are 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 valuation work is continually validated through our active involvement in mergers, acquisitions and perpetuation planning. Representing both buyers and sellers, advising firms on internal stock transfer, and leading the Best Practices initiative keeps us “in the loop” on the changing factors driving agency values.

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