Sica Fletcher

MARCH 12, 2024

Insurance Agency Valuation: The Core Methods EBITDA An EBITDA ( earnings before interest, taxes, depreciation, and amortization ) valuation is a projection of a company’s profits that also includes the agency’s potential for overall profitability. SaaS, tech), those with very high projected growth rates, or for early-stage agencies.

Valuation

Sica Fletcher

SEPTEMBER 17, 2024

This valuation model is used largely in M&A settings to determine the value of a company as it would appear to a prospective buyer by adding interest, taxes, depreciation, and amortization costs back into the business’s profits, since these elements will be fundamentally different post-closing. Learn more at SicaFletcher.com.

Insurance

Sica Fletcher

SEPTEMBER 3, 2024

The table below contains a few recommendations to make your business more profitable. YoY growth, profitability, agency structure) that don’t necessarily result directly from the BoB. Selling an insurance agency book of business has a few advantages over selling the agency in total. Learn more at SicaFletcher.com.

Insurance

Sica Fletcher

MAY 15, 2024

This removes the effects of non-cash expenses on the agency, thus isolating the agency’s profitability because they can be different under the buyer’s management. Interest, taxes, depreciation, and amortization are then added to this number. Learn more at SicaFletcher.com.

Insurance

Sica Fletcher

MARCH 14, 2024

EBITDA is preferred for insurance agency valuations as a rule of thumb because it accurately represents the profitability of an agency over time by removing the operational expenses associated with running it. Larger or more profitable firms, however, may be closer to the higher estimates. Learn more at , ,, SicaFletcher.com.

Insurance

Sica Fletcher

MAY 8, 2024

This will give you time to make necessary changes to the operational structure to make your agency more profitable, thus increasing the probability of a higher payout when it goes to market. Beyond proof of sustained profitability when analyzing these documents, look for: Liquid Assets. What Documents Do I Need?

Insurance

Sica Fletcher

JULY 11, 2024

Insurance Brokerage M&A Multiples, 2024 The following sections offer additional context for the data in the table above by outlining the current insurance brokerage M&A market and providing insights from our team to make selling your brokerage smoother and more profitable once you get started. Learn more at SicaFletcher.com.

M&A

Mergers and Inquisitions

AUGUST 14, 2024

However, the specific question here is who profits from these features, not which users benefit the most. Again, these are all perfectly viable and profitable businesses, but they don’t have the same margin or valuation profile as true SaaS companies. vs. how much money it makes.

Investment

Sica Fletcher

JULY 1, 2024

boost your profits, cut your bottom line), doing so with a brokerage requires paying special attention to the diversity of your policy portfolio. The grim reality is that approximately 50% of brokerages are not in a good position to sell, either due to their own profit margins or the state of the market.

Insurance

Sica Fletcher

MARCH 8, 2024

Small to Midsize Brokerages Are Becoming More Valuable Projections indicate that interest rates are likely to decrease in 2024, which will make larger brokerages a profitable option for acquirers again. If they do, then we can expect to see valuations and, by extent, EBITDA multiples for insurance agencies rise.

Insurance

Sica Fletcher

JULY 2, 2024

Financial: Often referred to as private equity, these buyers are interested in purchasing an insurance agency for the express purpose of making it more profitable and then reselling it further down the road. Sica | Fletcher has been the leading name in the industry for the last decade since our founding in 2014.

Insurance

Sica Fletcher

OCTOBER 23, 2024

Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA): The total profits of the company with interest, taxes, depreciation, and amortization added back, showing the future value of the business to prospective buyers. Determine Valuation Methodology There are three traditional valuation methods for RIAs.

Valuation

Sica Fletcher

JUNE 14, 2024

Determine EBITDA Earnings before interest, taxes, depreciation, and amortization (EBITDA) is used as a measure of the profitability of an insurance agency while adding back interest, taxes, depreciation, and amortization - all of which will vary depending on the circumstances of the new owner. Learn more at SicaFletcher.com.

Insurance

Growth Business

NOVEMBER 23, 2023

Female Founders Fund Since 2014, the VC has been backing female founders across B2B, consumer, healthcare and fintech. The fund will not invest in hardware, medical devices or consumer social networks. Entrée Capital provides multi-stage funding for innovative seed, early and growth companies all over the world.

Investment

Sica Fletcher

APRIL 2, 2024

PE firms have taken up a larger space in the total number of insurance M&A acquirers, making the profit motive for acquiring a small agency a bigger factor influencing insurance M&A deals in the current market. Agency vs. Company: Which Is The Better Insurance M&A Deal? Learn more at SicaFletcher.com.

Insurance

Tyton Partners

NOVEMBER 28, 2023

In 2014-2015, we decided to take our impact to the next level. We understand that the positive impact of our investments goes well beyond profit margins. That’s why we instituted an Equitable Venture pool, a revolutionary approach where founders are entitled to share in the profits generated by our Fund. that they deserve.

Capital

Sica Fletcher

MARCH 26, 2024

Buyers want to acquire your agency and intend to sell it after several years for a profit, typically as part of a larger portfolio of purchased companies (e.g., and EBITDA gives buyers a better sense of the agency's future profitability. aggressive competition, regional chains, etc.). Learn more at , ,, SicaFletcher.com.

M&A

InvestmentBank.com

OCTOBER 24, 2019

While hospitals can profit from alignment with physician practices, some argue that physician practices also benefit from this relationship given the greater resources and income generating opportunities available to them [17]. 2014, March 25). 2014, September 12). 2014, August 1). 2016, April 16). 2019, February 19).

Hospitality

Peak Frameworks

JULY 20, 2023

For instance, consider the case of Satya Nadella , who became the CEO of Microsoft in 2014. They need to balance short-term profitability with long-term growth and sustainability. CEOs must balance their responsibilities with the interests and expectations of these groups.

Mergers and Acquisitions

Sica Fletcher

SEPTEMBER 12, 2024

Changes in the Valuation Process Valuation is the first formal step in the M&A deal process, taking place once the seller has gathered all their preliminary documents and made any necessary changes to the company's internal structure to make it more profitable. Learn more at SicaFletcher.com.

Insurance

IBG

JANUARY 9, 2023

In reaching its decision, the court relied on the basic definition of “security” in the securities law: The term “security” means any note, stock, treasury stock, security future, security-based swap, bond, debenture, evidence of indebtedness, certificate of interest or participation in any profit-sharing agreement.

Broker

Sica Fletcher

JULY 31, 2024

These buyers are interested in the financial profitability of their returned investment post-closing, which means they are willing to purchase agencies at a loss now if they see the possibility of profiting from them in the future. Learn more at SicaFletcher.com.

M&A

Sica Fletcher

JUNE 20, 2024

Effectively, this means that, for the first time , buyers are purchasing insurance agencies at a loss for themselves in order to capitalize on what they see as profitable long-term investments. operating profit as a percentage of total revenue) when performing your valuation. Learn more at SicaFletcher.com.

M&A

Sica Fletcher

APRIL 11, 2024

These are specialists whose job is to sell your agency as it currently exists, though they may advise you on possible paths to make your agency more profitable (and therefore more appealing to buyers). M&A Advisory Firms For the vast majority of insurance agency sellers, you will likely work with an M&A advisory firm.

Insurance

The TRADE

AUGUST 1, 2023

If liquidity is reduced, everybody is focused on the same amount of volume and trying to keep their businesses profitable and viable,” says Beasley. However, for her, the focus needs to be on growth initiatives to boost liquidity in Europe. “If

Equities

Cleary M&A and Corporate Governance Watch

MAY 31, 2023

In order to give permission to proceed, the court must be satisfied that the shareholder has established a good prima facie case, which, per Abouraya v Sigmund [2014] EWHC 277 (Ch), is a “a higher test than a seriously arguable case”, at least with respect to claims brought under the common law rules.

IT

Sica Fletcher

APRIL 16, 2020

While insurance premiums tend to be one of the last bills not to be paid, a 50% drop in GDP would surely have a massive impact on insurance premiums, brokerage revenues, and profit margins. that’s exactly what we did from 2009-2014. The Great Depression lasted for an entire decade. Treasury bonds and mortgage-backed securities.

Insurance

Bronte Capital

JUNE 30, 2022

But there is no logical reason you would take all this risk and share the profits - but not the risk - with distant shareholders. Bluntly being a mafioso is highly profitable and highly risky. You don't want to put it in a public company have lots of scrutiny and share the profits but not the risks with say CALPERS.

Profitability

InvestmentBank.com

MAY 18, 2021

Most facilities are owned by private sector businesses while other community hospitals are either non-profit, for-profit, or government owned. Asia’s Ascent — Global Trends in Biomedical R&D Expenditures, The New England Journal of Medicine (2014), [link] (last visited May 6, 2017). Justin Chakma et al.,

Healthcare

Mergers and Inquisitions

MARCH 19, 2025

According to Reuters , consumer/retail deals accounted for 15% of private equity deal volume between ~2004 and ~2014 but fell to only 7% between ~2014 and ~2024. Private equity interest in consumer retail started strong but declined over time. In that same time, PE deal volume grew by over 50%. are unprofitable.

Private Equity