Insurance agencies contemplating a merger or acquisition should employ a “tactical approach” to identifying takeover targets, determining in advance the potential of a proposed deal and whether the combination would fill gaps in their organizations.

Agencies looking at a potential target should also do so from the perspective of whether the proposed deal would help put their organizations where they want to be in three-to-five years.

These prescriptions for success in building an agency through mergers and acquisitions was outlined by Steven Wevodau, managing principal and an M&A specialist at Harrisburg, Pa.-based WFG Capital Advisers, during a seminar here on “Mergers & Acquisitions & Other Strategic Alternatives to Maximize Shareholder Value.” The seminar was hosted by WFG and The National Underwriter Company–parent company of this newsmagazine.