Search
 

Have Agency Buyers Lost Their Minds?

Soaring sale prices driven by expectations that new owners can boost

By Harmony Nicole Fortenberry | Updated on February 04, 2007

Have agency buyers lost their minds? This is a question frequently asked by agency principals who are shocked to hear how high a price a buyer paid for a peer agency. How in the world, they wonder, could their mediocre competitor possibly be worth 2.0-times revenue?

The answer, as you might expect, is no, buyers haven’t lost their minds. It is true that the value of agencies, expressed as a multiple of profits or revenue, is as high (and in many cases higher) than at any time in recent memory. But the buyers doing the vast majority of the deals are public brokers who are disciplined and are closely scrutinized by their investors.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2024 ALM Global, LLC. All Rights Reserved.