Agency Valuation Estimator © 2006

Valuator

Each of the following questions must be answered.
Responses should reflect a full year of operations.

FROM YOUR PROFIT AND LOSS STATEMENT

TOTAL AGENCY REVENUE (Include commissions, interest income and income from all other sources.) $

TOTAL AGENCY EXPENSES $

PROFIT BEFORE TAXES (The following result should agree with your financial statements. If it does not agree, please review the amounts that you have shown as Total Revenue and Total Expenses.) $

The following information is important for understanding your income.

PROPERTY & CASUALTY COMMISSIONS $

LIFE INSURANCE COMMISSIONS $

COMMISSIONS PAID BROKERS (How much did you pay to agents or brokers not employed directly by your agency?) $

OWNER COMPENSATION (Include salaries, bonuses and profit distributions.) $

ALL OTHER COMPENSATION (Include salaries, commissions and bonuses paid to staff and agency producers.) $

RENT AND PREMISES (Include the cost of utilities, general maintenance such as cleaning services) $

UNUSUAL OR ONE-TIME INCOME (If you had any one-time or unusual income during the year please show the amount.) $

UNUSUAL OR ONE-TIME EXPENSES (If you had any one-time or unusual expenses during the year please show the amount.) $

FROM YOUR BALANCE SHEET

TOTAL ASSETS $

TOTAL LIABILITIES $

SHAREHOLDERS' EQUITY / NET WORTH (If this amount does not agree with the amount shown on your Balance Sheet, review the totals shown above for Total Assets and Total Liabilities.) $

The following information is important for understanding your true Net Worth.

CURRENT ASSETS (If these are not shown specifically on your Balance Sheet, they are all amounts that can be collected within one year.) $

INTANGIBLE ASSETS (These amounts may be identified as Expirations, Covenants or simply Intangibles. They arise as a result of an acquisition.) $

CURRENT LIABILITIES (If these are not shown specifically on your balance Sheet, they are all amounts that are due and payable within one year.) $

OTHER IMPORTANT INFORMATION

TYPE OF BUSINESS ORGANIZATION

NUMBER OF OWNERS

TOTAL STAFF (including owners) (If you have "open positions" that you plan to fill, please include.)

DO YOU HAVE COVENANTS-NOT-TO-COMPETE WITH YOUR PRODUCERS?

DO YOU HAVE COVENANTS-NOT-TO-COMPETE WITH YOUR KEY EMPLOYEES?

HAVE YOU BEEN TERMINATED BY ANY MARKETS DURING THE LAST TWO YEARS?

DOES MORE THAN 20% OF YOUR BUSINESS COME FROM SPECIAL PROGRAMS OR SPECIALTY LINES OF BUSINESS SUCH AS BONDS, AVIATION, OCEAN MARINE ETC.?

The resulting estimate will reflect a general application of standard valuation methodologies to the above information and may change substantially based on a comprehensive review of your operations and a complete discussion of your financials.

For agencies with poor profit margins the estimate reflects a sale of expirations.

About

The strength of Moat Associates' insurance agency consulting is its ability to marshal talented people. People whose hands-on insurance experience enables them to respond effectively to the challenges of insurance arbitration, valuation and expert testimony.

Moat Associates