SUMMER 2022 25
Mergers / Acquisitions
In today ’ s hot M & A market , how do you know if you should stay or go ?
We are all witnessing tectonic shifts in the insurance industry : products , pricing , technology , talent shortage , looming regulations , capacity to market , business model design . With many independent agencies making impulsive decisions to sell , you may find yourself asking , should we stay and make a play for success for a few more years or sell now ?
Everyone should be open at any time to buying , selling , or merging ( bringing on an agency , or merging your agency with another ) as it is always worthwhile to explore your options . This can be difficult to do , however , while focusing on operations and the day-to-day complexities weighing agencies down today .
Business owners that have figured out how to defy the gravity of the influences and factors challenging our industry enjoy market distinction , the best talent , better marketing , a tech infrastructure that supports the sales cycle , more balance , and a higher valuation potential for when it ’ s time to exit . What ’ s the secret sauce ? They don ’ t go it alone . Many partner with a reputable IMO to help build a solid foundation when it comes to technology and business model , access to experts for large and complex cases , and multiple sales funnels .
IMO partnerships enable the greatest opportunity to meet and exceed your goals as they help provide the resources , support and personalized approach needed to understand current market value of the asset you ’ ve created . This is essential to growing a sustainable , revenue-generating agency that thrives into the future , or puts you in a better position to sell .
* Data provided by OPTIS Partners . ** Inside the Intermediary : BGA and IMO Survey by NAILBA & LIMRA 1 / 12 / 2022
Increase in M & A deals expected for Q3 and Q4 *
72 % BGAs / IMOs believe M & A to continue over next 3 years **
Wondering if it ’ s time to sell and cash in your equity ?
Acting too quickly could leave money on the table ! Discover the fastest way to increase the value of your business Learn the # 1 technique for attracting top producers Be able to determine with confidence if , when , and why you should sell your business
Watch this 25-minute webinar , “ The 5 Signs It ’ s Time To Sell Your Agency ,” as part of your due diligence , or contact James _ Wong @ ajg . com to learn more .
For financial professional use only . Not for public distribution .
This content is for informational and educational purposes , and is not designed , or intended , to be applicable to any person ’ s individual circumstances . It should not be considered as investment advice , nor does it constitute a recommendation that anyone engages in ( or refrains from ) a particular course of action .