ACG - Agency Consulting Group

The PIPELINE

A national monthly newsletter for agency principals dedicated to agency management topic

Can You Value Your Own Agency?

Have you ever wondered how the appraisers in our industry calculate the value of your agency or other agencies? Very few valuers in the insurance industry have a working crystal ball that conjures Agency Values. I can also assure you the rule-of-thumb methods of Agency Valuation such as “multiples” of revenues or earnings are no more valid than an odds sheet at the sports book. A simple guess based on a few solid facts does not constitute an accurate appraisal of value.

However, when Agency Consulting Group, Inc. and a few other appraisers in the industry cast valuations of insurance agency businesses, the resulting projections are uncannily accurate. A recent review of a five year old valuation found our five year revenue projections accurate to within .1%. What is the secret?

The value of an agency is not a complex formula, IT IS THE CURRENT VALUE OF THAT AGENCY’S FUTURE EARNINGS POTENTIAL. If every one of us had a clear crystal ball, looking into the future to accurately and exactly foretell the agency’s profits and earnings results for the next several years, it would allow anyone to easily translate those facts into precise present values. However, lacking that accurate crystal ball, THE AGENCY VALUER provides you with the tools to develop and recognize the agency’s trends in each line of income and expense. You will accurately define how those trends will evolve into the future, and translate those future income and earnings potentials into a present value based on historical fact and your estimates of future occurrences. Your value will be based on solid facts rather than rule-of-thumb fiction.

THE AGENCY VALUER comes to you on a CD that can be used for a full year. A detailed Valuation Questionnaire and instructions to input the data as well as evaluate the resultant trends is also included. Agency Consulting Group, Inc. developed THE AGENCY VALUER software for agencies like yours at a fraction of the cost of our professional valuation services. You will receive THE AGENCY VALUER, Valuation Questionnaire and instructions for only $500 for the first year (annual renewals are only $100). Your subscription also comes with one full year of our HELP LINE (800-779-2430) where you can get your questions answered. Finally, there is a double guarantee :

1. You have a full money-back guarantee for 90 days.

2. In the event that a 3rd party valuation and report becomes necessary, the licensee can obtain one from Agency Consulting Group, Inc. at a rate that discounts the ENTIRE cost of The Agency Valuer from the normal cost of the valuation service.

Call us 800-779-2430 to order your Agency Valuer or for more information about Agency Consulting Group, Inc.’s valuation services.