3 Strategies to Increase your Insurance Agency's Value in 2024

As we continue to move through 2024, the insurance space is noisy???

The negativity surrounding underwriting, uncertainty with rates, and underlying fears that tech will replace agents continue to leave agency owners uneasy.?

Agency owners hungry for growth will need to stay focused ↗

?Agency owners who can silence the noise and hone in on value drivers they can control (within their business) will see the most growth in the coming year.?

M&A valuations prove to be a bright spot ??

Despite these uncertainties, investors remain bullish, and multiples remain strong as we kick off the new year. Well-run agencies have continued to receive top dollar (and have been over the past 6-12 months). We predict that trend will continue throughout 2024.

Your business is an asset that ultimately has a value associated with it.?

Staying focused on the value drivers within your business that you can control will help you future-proof, de-risk, and keep you well-positioned for what’s to come.?

Over the next 6-12 months, doing everything you can to increase your business's value will give you more flexible options for the future.?

?1. Pick up the Pace ??

Agencies that are growing at an above-average pace are valued at a premium. Start with what is working to generate sales.?

?Can you pick up the pace??

• Hire a few commission-heavy producers
• Double down on effective marketing strategies
• Implement cross-selling campaigns
• Secure heavy lead flow enterprise partnership

2. Eliminate the Waste ??

Cutting expenses and improving profits will drive your value higher. Pull out your P&L and a magnifying glass.??

What is necessary for growth, and what isn’t?

• Evaluate comp plans
• Reassess your tech stack and vendor contracts
• Dig into marketing spend and cut dollars that are not returning positive results ?

3. Operationalize your Space

Generational decisions or previous acquisitions may have resulted in multiple business locations. Evaluate each space for operational efficiencies.?

?Can you increase efficiency and lower expenses? ?

• Consolidate locations to reduce your lease expense
• Implement virtual meetings and processes to improve efficiencies
• Reduce managerial & admin load and re-deploy payroll to marketing & sales

Looking to learn more about a topic we didn't cover??

Email us at [email protected].?

About Legacy Advisors

The Agency Advocate is brought to you by Legacy Advisors, the only M&A advisor comprised of previous agency owners dedicated solely to sell-side insurance deals.?

?Schedule a call with us if you are curious about what a sale could look like for you. We can answer your questions, advise on market trends, and discuss ranges for what a buyer might pay for your business.

https://www.legacy-advisors.com