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...educed price if they have no young blood to carry the existing book of busines...acquisitions, and joint ventures with banks, insurance companies, accountants,...

... . In contrast to the turmoil in the stock market today, owning an insurance agency looks more attractive than ever. Revenue and profit growth are strong and outside investors — especially banks — continue to show strong interest in the business. Even the bust of the new economy' has helped by leveling the playing field in the battle for talent, providing agency owners with a once-in-a-generation opportunity to recruit new blood into the insurance industry. If you already own, or are considering owning, an interest in an insurance agency, here are two points to consider: During the next decade, the return potential of stock in a private business might well exceed that of the S&P 500. Analysts are cautioning the current generation of investors that historically there have been long periods in which stocks moved sideways ... ' among agencies is enormous (we work with several agencies with a double-digit dividend yield') . However, we estimate that the yield averages about 4.5%, or two-to-three times the level of the S&P 500. In contrast to the turmoil in the stock market today, owning an insurance agency looks more attractive than ever. Revenue and profit growth are strong and outside investors — especially banks — continue to show strong interest in the business. Even the bust of the new economy' has helped by leveling the playing field in the battle for talent, providing agency owners with a once-in-a-generation opportunity to recruit new blood into the insurance industry. If you already own, or are considering owning, an interest in an insurance agency, here are two points to consider: During the next ...

... Services Glossaries Management Resources & Links Categories Popular Recent All Back Community Involvement Checklist:1/26/2015 12:00:00 AM by Don Phin This content has not been rated yet. COMMUNITY INVOLVEMENT CHECKLIST: Organize a neighborhood cleanup project; Support or start a community job training center; Offer free assistance to needy area residents; Organize a walk-a-thon to promote a community cause; Hold a blood drive on the company premises; Adopt a nursing home, and support it with employee volunteers; Staff your child care center with senior citizens; Lobby local, state and national legislators about community issues; Sponsor an AIDS Awareness Week; Offer funding and volunteers to a local drug rehabilitation center; Join with local banks to develop an affordable housing program; Wage a community literacy campaign; Sponsor an ... program for area high school students; Train high schoolers in the community in career development and interviewing skills; Support a child abuse prevention program; Sponsor a center for the homeless; Donate excess inventory to local schools, churches, etc. Offer employees sabbaticals for work on major community projects; Invite community organizations to speak to employees about their needs; Donate fundraising help, equipment, money to nonprofit groups; Get company retirees involved in community volunteering; Donate time to Boys & Girls clubs, Big Brothers and Little Sisters programs; Adopt a school; Hire high school or college interns; Contribute to a local area community foundation, United Way or non-profit group; Get involved with Junior Achievement; Plant trees, flowers and shrubs in public parks or other public areas; Sponsor a Little League or ...

... future, because it provides each new generation with a "free" vehicle for agency ownership and each retiring generation with a strong cash buy-out position. This agency is cultivating objectives in the short term, strategies in the longer term, and people for its long-term future. There are no losers in this process. The agency owners know that they will attract the best possible talent because the "new blood" is assured ownership without the need for heavy investment. The owners also know that they can exert a great deal of pressure and expect strong performance from the younger stars, replacing agency (and value) growth for the dollars that they would command if they were selling outside the business. The younger owners don't get away scot-free either. Since the older owners are cashed out in lump sums ... the agency must show financial growth and profit stability to the banks that provide the leverage for buying out the former owners. This requires all new owners to pledge literally everything they own to the success of the agency. These new owners now must not only continue to grow the business profitably, they must immediately plan for the cultivation of a new field of owners to take their place as successors, when they're ready to cash out. A few generations of owners determined that every new generation should be under continuous financial pressure to perform, with strong downside results if the agency falters. As a result, the agency managers must constantly be aware of their operating and financial results. This is an excellent trait under any circumstances, but the pressure of a financial institution demanding annual agency values to justify ...

...mote a community cause; Hold a blood drive on the company premises; Ad...ilitation center; Join with local banks to develop an affordable housing p...

...eration opportunity to recruit new blood into the insurance industry. If you a.... CONCLUSION Given the recent bloodbath in the stock market, many inve...

...t possible talent because the “new blood” is assured ownership without the ne...al growth and profit stability to the banks that provide the leverage for buy...

... to modify the goals due to changes in market conditions, company representations, or internal personnel support issues. Perhaps the most critical plan for agency principals, however, is a Perpetuation Plan. When all of the owners are entering their 60s it might be too late to do much about perpetuation. Most will be forced to sell to an outside buyer for a reduced price if they have no young blood to carry the existing book of business or to produce new accounts for the buyer. And "young blood" isn't always the answer. Don't assume that the younger people in the agency want to pay you what you think is a good price for your ownership interest. Talk about it with them. Discuss it among yourselves. If one principal wants to get a son or daughter involved in ... respond? Know where each of you stands personally and plan to come up with the best resolution for all of you. Putting your heads in the sand and ignoring the issue will almost always end in an ugly resolution, both emotionally and financially. SALES CULTURE Successful agencies develop a sales culture that rewards sales people for selling the types of business that are profitable for the agency while not breaking the bank. Most high-valued agencies use sales centers to get ex-dates and set appointments for the producers. They're also involved in program or niche selling that targets profitable accounts. Expansion into Employee Benefits is often critical to the overall success of agencies. Rounding out or getting rid of smaller accounts is also critical. If you can't make money selling and/or handling a piece of business, get rid of ...

... to modify the goals due to changes in market conditions, company representations, or internal personnel support issues. Perhaps the most critical plan for agency principals, however, is a Perpetuation Plan. When all of the owners are entering their 60s it might be too late to do much about perpetuation. Most will be forced to sell to an outside buyer for a reduced price if they have no young blood to carry the existing book of business or to produce new accounts for the buyer. And "young blood" isn't always the answer. Don't assume that the younger people in the agency want to pay you what you think is a good price for your ownership interest. Talk about it with them. Discuss it among yourselves. If one principal wants to get a son or daughter involved in ... respond? Know where each of you stands personally and plan to come up with the best resolution for all of you. Putting your heads in the sand and ignoring the issue will almost always end in an ugly resolution, both emotionally and financially. SALES CULTURE Successful agencies develop a sales culture that rewards sales people for selling the types of business that are profitable for the agency while not breaking the bank. Most high-valued agencies use sales centers to get ex-dates and set appointments for the producers. They're also involved in program or niche selling that targets profitable accounts. Expansion into Employee Benefits is often critical to the overall success of agencies. Rounding out or getting rid of smaller accounts is also critical. If you can't make money selling and/or handling a piece of business, get rid of ...

...fiercely in the past that some bad blood might linger? Does one of the agencie...tion; joint ventures with carriers or banks; special target/niche markets; and...