Feb 4, 2020
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Michael Mensch is a Client Advisor and Managing Partner for Agency Brokerage Consultants. As a consultation company, they are experts in the valuation, sale, and acquisition of insurance distribution businesses. They work with retail agencies, wholesale brokerages, and program administrators. Michael has assisted in over 150 merger and acquisition transactions, as well as over 600 valuations of brokerages and insurance agencies. He is also a Certified Business Intermediary and a Certified Merger & Acquisition Master Intermediary.
Michael joins us to share how the business of agency sale and acquisition works. He describes the biggest changes in the insurance industry in the last decade and how agencies adjusted with the rise of insurtech. He explains how to determine the risk appetite of potential buyers and the impact of being underprepared. Michael shares some of their best success stories, as well as a few bumps in the road. He also shares valuable tips for those who may want to start an agency.
“Value is strongly driven by earnings in the business.” - Michael Mensch
Today on Spot On Insurance:
- What his life was like as a student to where he is today.
- The biggest change in insurance over the last 10 years.
- How traditional agencies are partnering with insurtech companies.
- What "not being prepared" in the industry means for agencies.
- Determining the risk appetite of your potential buyers.
- How long it takes to get a winning bid in their business.
- What it means to carry too much risk post-sale.
- Some success stories he's personally witnessed.
- The challenges they encountered in their business.
Key Takeaways:
- If you operate an agency, you need to have a separate trust account.
- The fastest-growing agencies and the most profitable agencies are all specialties.
Resources Mentioned:
- Podcast: Built to Sell
Connect with Michael Mensch:
- Agency Brokerage Consultants
- Email: mmensch@agencybrokerage.com
- Blog: How to Pick the Right Lender for an Agency Acquisition
This episode was brought to you by…..
Insurance Licensing Services of America (ILSA), America’s Premier Insurance Compliance and Licensing experts. To learn more about ILSA and their services, visit ILSAinc.com.
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