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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 ...

...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 ...

... 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...