Agency Values: More than just good conversation

Have you had your agency valued recently? If not, an up-to-date valuation can be a valuable planning tool for your agency. An agency valuation is the crucial first step for many agency events, including:

• Perpetuation

• Mergers and acquisitions

• Estate planning

• Buy/sell agreements

• Divorce settlements

As the foundation for these important transactions, an accurate valuation is crucial. Furthermore, a valuation that does not cut corners and meets tax and court guidelines may prevent expensive future litigation.

At Burand & Associates, we combine our financial and industry expertise with our proprietary evaluation software to provide an accurate, comprehensive and detailed appraisal. We also identify opportunities and offer suggestions for increasing your agency's value.

Most importantly, we SPECIALZE in INSURANCE! Generalist often do not know a premium from a commission from a contingency. Why is this distinction critical? Without an accurate, detailed valuation performed by an industry specialist, agency owners can find themselves facing a number of potential hazards, including running afoul of the IRS, incurring negative tax implications, and increasing the potential for litigation.

Additionally, Chris Burand is a Certified Business Appraiser (CBA), a designation earned from NACVA. The CBA designation is only earned by those who demonstrate extensive knowledge of valuation case law and the ability to write high quality valuation reports that meet stringent requirements. Most valuation designations do not require proof the appraiser can put their knowledge to constructive use in valuation reports, which is obviously important and a tremendous benefit to the client.

If you are an agency owner or potential owner, an agency valuation will, at some point, be required. Contact Chris at chris@burand-associates.com to start with the strongest foundation possible.

---

NOTE: The information provided herein is intended for educational and informational purposes only and it represents only the views of the authors. It is not a recommendation that a particular course of action be followed. Burand & Associates, LLC and Chris Burand assume, and will have, no responsibility for liability or damage which may result from the use of any of this information.

None of the materials in this article should be construed as offering legal advice, and the specific advice of legal counsel is recommended before acting on any matter discussed in this article. Regulated individuals/entities should also ensure that they comply with all applicable laws, rules, and regulations.