Pacific Business Advisors represents people throughout California who want to sell or buy a business. I started the firm in 1987 and became licensed to represent sellers and buyers of businesses in 1971. I become an attorney in 1998. We have clients who are interested in acquiring insurance brokerage firms primarily, but not exclusively, in Southern California. Independent insurance brokerage firms are preferred. The question that always arises is how much is a particular insurance brokerage company worth. It's always difficult for buyers, sellers, and intermediaries like Pacific Business Advisors to determine value, but these are some of the factors to be considered when valuing an insurance brokerage firm:

1. The number of licensed agents, how long they have been with the company, and the number and volume of sales each has closed in the last 12 months;
2. The size of the book of business in both number of accounts and dollar volume;
3. The number of pending transactions;
4. The company's market share within its primary marketing area;
5. The number of years in business and the ·company's reputation;
6. The location of the office. This may be a positive or negative factor;·
7. Any lease terms. This may be a positive or negative factor;
8. The name of the company. A generic name is best because it can be transferred to new owners more easily than a person's name;
9. Whether the owner-broker will stay with the new operation for a period of time. Six months or more is ideal;
10. Any physical assets such as computers;
11. The list of insurance companies that have appointed you, and
12. Most importantly, the terms of the sale.

If you own an insurance brokerage company in California and would like to sell it, please call me for a confidential discussion. Likewise, if you would like to acquire an insurance brokerage company anywhere in California, please call me, Michael Chulak directly at 818-991-9019 or contact me by email.