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BUDGETING FOR NEW PRODUCERS by Chris Burand Few agencies consider the cost of new producers. Chris Burand explains why agencies wishing to grow or perpetuate need to focus on th...
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A soft insurance market is often used as an excuse for ignoring certain issues. Why bother figuring out whether to retain risk or transfer it to...
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An agency valuation I completed recently came in considerably lower than the agency owners expected. The reason? Their balance sheet was very poor and they were materially out of trust: Meaning that their ratio of Accounts Receivable + Cash to Accounts Payable was less than 1. The agency principals were quite upset that I would decrease their value for this reason. They retorted, “We always pay our companies on time, our companies have never been hurt by this, our customers have never been hurt by this, and our CPA has never found fault with this practice. You're the only one who thinks it matters!”