Strategic Planning – 1st Quarter Adjustments

Each year Agency Consulting Group, Inc. evolves a new product or a new service to provide added value to its consulting customers. In 2001, we have released THE AGENCY VALUER, a software package with instructions that permits you to generate a valuation for your own agency. THE AGENCY VALUER is a copy written program based on the methods used by Agency Consulting Group, Inc. to gather data, evaluate trends, and build pro formas to determine values for agencies under a variety of conditions. These methodologies, developed over the last twenty years, have been condensed and streamlined with much of the mathematics involved in generating prospective values programmed for the convenience of agents who understand the agencies they own or are valuing, but do not conduct valuations in the normal course of their businesses.

The current release of THE AGENCY VALUER (V.1.1) is on one CD and contains a series of spreadsheets that calculates the trending of revenues and expenses for insurance agencies, in addition to determining the Balance Sheet liquidity ratios including an agency’s Tangible Net Worth.

Agency Valuation is a combination of science and art as definitive historical data is combined with your knowledge of the prospective revenue generation and expensing of a known agency. Risk Factors are considered and Return percentages are defined to permit the program to return a series of valuation formula results that provide a deep insight into the prospective fair market value of an agency in a number of circumstances.

Each phase of data entry, risk calculation, and interpretation of results are included in the detailed instructions that accompany the program. This program has been generated as a part of Agency Consulting Group, Inc.’s MAM/ACE (Masters in Agency Management/ Agency Certified in Excellence) PROGRAM that is being offered through State Associations in various sites throughout the U.S. Within these programs, THE AGENCY VALUER accompanies the Agency Valuation Seminar portion of the curriculum. However, the program is also available independently to agents who wish to use it for individual valuation needs.

If you would like to value your agency (or other agencies) at a low cost, in the privacy of your own office, consider investing in THE AGENCY VALUER. Included in the registered CD are Agency Consulting Group, Inc.’s Valuation Questionnaire, The Agency Valuer Instructions, and THE AGENCY VALUER program, itself. Registered owners may use THE AGENCY VALUER for multiple uses and will receive update programs as THE AGENCY VALUER is further improved and streamlined.

If you would like to order your copy, please complete and return THE AGENCY VALUER form contained in this newsletter. If you have any questions regarding this new service, please contact Al Diamond at 856-779-2430.