How do you find independent agencies that are for sale?

Yeah this is the real answer. In the life and health space, there are 2 big "FMOs" owned/funded by private equity that are buying up everybody.

Give it a decade or two and PE and Big Business is going to own almost everything, in every sector.

I guess that's better than the government.

Maybe…

I hear in both the Life & PC sectors, the carriers don't like this consolidation at all. Instead of having a chance with thisahds of agencies to speak directly to the principal or management, the largest entities now have limited access to decision makers to impact getting added or not getting moved out of the top couple carriers offered. The largest entities are also telling carriers what they need to do, etc. More like what has happened at Walmart where Walmart tells suppliers what size containers & boxes & quantity that they will allow on their shelves
 
Integrity giving 7-10 times commission for a Medicare agency . So an fmo netting $1 mil a yr ( which isn't hard ) is getting $ 7 million plus . That's crazy especially when 70% of what their buying is Medicare business were the agent has an uncertain future . Individual agents only get 1.5-2 times commissions . I'd never do that . I'll simply take no new business and answer current clients and let it die over the yrs . You'd make 2-3 times the money doing that .

From what I am told, the 7-8 times is not commission/revenue. It is 7-8 times EBITDA- earnings before interest taxes depreciation amortization.. so, I believe the 7-8 times is after expenses like rent, labor, utilities, payroll taxes, etc. This may actually be close in some agencies to 2-3 times commissions
 
You have to prospect the agency owners and see if they would be willing to sell and if they are willing to sell...you need to convince them that you can come up with the money. Your due diligence is another story. That is a 20 volume book.
 
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