Would You Buy This Insurance Agency?

In this Coffee Break episode of Business Refocused, Carey and Lindsay talk through what agency owners should actually be looking at when evaluating an acquisition.

Too often, the conversation starts and ends with revenue or a rumored multiple. But as Carey explains, that can lead to a very incomplete picture. Growth, profitability, staffing, book mix, retention risk, and the people behind the business can all change whether an agency is a strong acquisition or one you should walk away from.

They also preview Carey’s upcoming “Buy or Pass” session at ITC Agents, where attendees will evaluate real agencies, decide whether they would buy them, and then see what those businesses actually sold for. The goal is to show just how much the answer can change once you look beneath the surface.

One example drives that point home. On paper, the agency looked attractive: strong revenue, solid profitability, commercial lines concentration, and positive growth. But once they revealed that 72% of the staff was over age 68, the risk profile changed significantly. A buyer would need to think about potential turnover, staffing gaps, client retention, and what happens when a major transition hits the team.

A few things we cover:

• Why revenue alone is not enough to evaluate an acquisition
• Which financial and operational metrics buyers should look at
• How staffing and succession risk can affect agency value
• Why the same agency can look very different once you dig deeper
• How buyers can avoid overpaying for an agency
• What sellers can strengthen before going to market

If buying an insurance agency is part of your growth strategy, this episode is a good reminder that the multiple is only one piece of the decision. The real work is understanding what you are actually buying.