What is your agency worth? And why it’s important to know
One day, you'll want all your life’s work to pay off.
You’ve invested blood, sweat and tears into your agency over the years. And, you’ve made many sacrifices to achieve success. Eventually it will be time to capitalize on your investment—so you can enjoy a new chapter in life.
In exit planning and M&A transactions, most advisors will follow an agency’s preliminary valuation and five-year cash flow forecast to assess its value. And that value determines the owner’s potential sales price and breadth of potential exit options.
If the owner does not take steps to maximize agency value in the years leading up to a sale or exit, then he/she may not receive the full potential value for the agency. Yet, a valuation costs big money. So naturally you need to know if this is vital.