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... have thousands of articles, checklists, tip sheets, sales letters, and more! Communications Marketing Customer Service Planning Finance/Accounting Risk Management Human Resources Selling Legal and E&O Technology Life/Financial Services Glossaries Management Resources & Links Categories Popular Recent All Back Agency Acquisitions: Buyer Beware!4/30/2013 12:00:00 AM by CompleteMarkets Editor , Sharon Cunningham This content has not been rated yet. Don't overpay for an acquisition! When Quaker Oats purchased Snapple Beverage Company in 1994 for $1.4 billion, ... believed that Snapple would complement their enormously successful Gatorade brand. How wrong they were! In 1997, after less than three years, Quaker Oats sold Snapple for $300 million. It was estimated that the division was losing more than $2 million a day at the time of divestiture. You can't pick up the Wall Street Journal without seeing an article about an acquisition. Acquisition multiples (price EBITDA, price earnings, price revenues, etc.) that firms are paying appear extremely questionable. Are these prices truly indicative of ... We have thousands of articles, checklists, tip sheets, sales letters, and more! Communications Marketing Customer Service Planning Finance/Accounting Risk Management Human Resources Selling Legal and E&O Technology Life/Financial Services Glossaries Management Resources & Links Categories Popular Recent All Back Agency Acquisitions: Buyer Beware!4/30/2013 12:00:00 AM by CompleteMarkets Editor , Sharon Cunningham This content has not been rated yet. Don't overpay for an acquisition! When Quaker Oats purchased Snapple Beverage Company in 1994 for $1.4 billion ...

... thousands of articles, checklists, tip sheets, sales letters, and more! Communications Marketing Customer Service Planning Finance/Accounting Risk Management Human Resources Selling Legal and E&O Technology Life/Financial Services Glossaries Management Resources & Links Categories Popular Recent All Back Mergers And Acquisitions: Making The Deals 4/30/2013 12:00:00 AM by CompleteMarkets Editor , Sharon Cunningham This content has not been rated yet. Amid the merger and acquisition frenzy, many agencies believe the value of their businesses might never be higher. ... Two similar agencies with the same revenue could differ greatly in their ability to generate profits. Conversely, sellers should consider price vs. after-tax cash flow when structuring their deals. For example, if the agency is a C-Corp and the buyer wants to do an asset purchase, there's double taxation to the selling shareholders. The agency will first pay tax on the gain from its sale of assets to the buyer. Then the shareholders will pay tax on the liquidating distribution from the agency. However, if the deal is a stock ... , the selling shareholder only pays capital gains taxes once. If the buyer will structure an asset-only purchase, then the price should be adjusted accordingly. Besides price, sellers should consider whether payments are made up front or retention-based, as the highest price might not produce the highest value. Sellers want more of the payment up front, while buyers like to delay payments as long as they can. Receiving a slightly lower purchase price but significantly more upfront would provide greater value. However, if the buyer structures a retention-based deal, ...

Agency Acquisitions: Buyer Beware!
Don’t overpay for an acquisition! When Quaker Oats purch...on’t allow yourself to be placed in poor financial shape because you overpaid for a purchase. Do your homework. Know your true threshold price and...

...ersky One of your friendly competitors mentions that he received two times re...permission from The National Alliance for Insurance Education and Research.

...that are still anxious to make acquisitions have their pick of distressed opportunities right now. Just because you dec... will begin to present various methods of combining compensation and perpetuat...

... , the high-quality talent market has become more fluid, as agents and brokers have come to recognize the very attractive economics of attracting impact players. And make no mistake, the economics of acquiring an impact player can be outstanding and might best be evaluated by comparing the acquisition of the impact player to the acquisition of an entire agency (by far, the most common means of acquisition-driven growth) . A traditional agency acquisition confronts the buyer with a number of challenges, including: The agency to be acquired might really be a wasting ... you're buying is critical in determining what it is worth. Agencies to be acquired are usually like a sausage link; they contain some things you want, but also some things that you would just as soon do without. Unfortunately, like a sausage, an agency purchase is normally an all-or-nothing proposition. Price expectations of agency sellers are often beyond what their agency can justify economically. As a result, the return on investment offered is often meager, and can in fact be negative. Often, after some time, the buyer ... All Back Acquiring Sales Talent: Is It Worth The Price?4/30/2013 12:00:00 AM by CompleteMarkets Editor , Kevin Stipe This content has not been rated yet. You could be better off by acquiring a sales superstar than buying another agency. Every year the numbers seem to get more outrageous. Pay levels for "impact player" athletes such as LeBron James and Tiger Woods continue to climb into the stratosphere. And it isn't just athletes. You name the endeavor, whether it's in the business ...

... We have thousands of articles, checklists, tip sheets, sales letters, and more! Communications Marketing Customer Service Planning Finance/Accounting Risk Management Human Resources Selling Legal and E&O Technology Life/Financial Services Glossaries Management Resources & Links Categories Popular Recent All Back Acquisitions: Is Bigger Really Better?4/30/2013 12:00:00 AM by CompleteMarkets Editor , Chris Burand 1 Verified Reviews - 5 of 5.0 1 2 3 4 5 Although, in general, growth is essential for agencies to retain markets and ... example, The Economist reported that every time Bank of America would make an acquisition, one particular competitor would open a nearby branch to capture all the newly acquired firm's dissatisfied customers! An article in the April 16, 2001 Albuquerque Journal cited another example. Wells Fargo purchased First Security, and then sold 22 branches to Bank of the West. Meanwhile, a competitor, First State Bank, opened 40% more new accounts in one month alone, primarily due to the Wells Fargo and Bank of the West acquisitions, as customers ... due to poor service. Growth generated by costly methods (acquiring other business, underpricing business, and creating complex cross-selling programs) usually doesn't work. Once engaged in these methods, these entities must grow significantly to justify their costly, high-risk strategy. Expansion through internal growth, although slower and less glamorous, works and has continually proven to be the most profitable method for growing a company. However, although growth is important (especially for small agencies), there's no extreme pressure or need for privately held, non-consolidator, non-bank ...

...br>Six reasons why mergers and acquisitions fail. Few business transactions ...ler's motive. Gather all the information possible. Get a third-party valuation. Consult an attorney. Consult a tax accountant. Strive for a win-win deal. Look for potential integration problems. ...

Mergers And Acquisitions: Making The Deals
Amid the merg... value from the business that they’ve worked for years to build.

...TUATION by Gary Jacobson and Larry Morrison These secrets are the really big o...h of these seven areas represents a major opportunity to save money and avoid major tax traps. These are not minor issues. In some cases, you can save more in future taxes than you currently make working full time for two years. Which would you rather do, take the time to plan the future, or work for two years?