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...What about the number of new-car franchised auto dealers compared with the num...iginally conceived by retail producers and their MGAs. On this basis, retail p...

... sell products and services, provide marketing or service information, and/or reinforce existing client relationships. Local and regional agencies should focus their Internet strategy on the areas that add value to their existing and future client relationships. An agency in the Mid-Atlantic region developed a franchise program that focused on businesses in 22 Eastern and Midwestern states. The firm put coverage and application information on its Web site so that franchisees could download the appropriate information and return it to the agency for further underwriting. As a result, the penetration rate on ... are also the very agencies that control their future because of the way they run their business. The prices paid for many agencies are quite high compared with both historic multiples and with many under-performing agencies. But when you consider the opportunity for the acquirer to leverage the operational and intellectual capabilities of the acquired firm, the price paid for the quality agency is usually quite reasonable. What are the business characteristics of high-value firms and what steps can an agency owner take today in order to position the agency for the future? How does ... . Most local and regional agencies are family owned and/or closely held. The principals of top firms recognize the duality' of their relationship with their agency — as both investors and employees. As investors, principals are entitled to economic returns based on the risk associated with their investment. As employees, they deserve appropriate compensation for the job they do. Even though their total paycheck reflects both investor returns and compensation for their job, the principals of top agencies are well aware of the difference between the two. A firm ...

... Mid-Atlantic region developed a franchise program that focused on businesses ... that serves insurance agents, brokers and companies, as well as financial ins...

...ware stores, like the True Value franchises, continue to dwindle into obscurity. Large discount and wholesale operators, selling on price ...selling a product, a service, or both, and market accordingly. Awareness sprinkled with creativity and baked with perseverance is a sure-f...

...s, or gain expertise that can be franchised throughout the broker’s orga...y appeared in the National Underwriter and is reproduced by permission.

...ey sell. Minimum California franchise tax. California imposes a minimum franchise tax on corporations. That tax is pr...ding. If the ESOP were set up earlier, and could gradually build up funds to b...

... . Again, these can be rewritten into a press release from your agency. Hertz, the car rental leader, gets millions of dollars of free publicity every year when it issues its annual Cost of Car Ownership Study. Although this benefits every Hertz location, corporate or franchised, the smart operators contact the local media and offer statements that enable the media to personalize the story with a local slant. You could be doing this with every release issued by each of your companies. A national release from a company stands a pretty good ... back to the basics: 1. Start a database with the address, phone, fax, editor, and writer listings for all news media in your community. Start with your daily newspapers, expanding to local radio and television stations (and don't forget cable TV operators) . Then expand the list to include weekly newspapers, local or regional magazines, even newsletters put out by area merchants. (For instance, many real estate companies publish monthly newsletters of general interest.) Be sure to separate this list from your trade ... greater demand if you are being pursued by a cluster. 2. IMPROVED EMPLOYEE MORALE. The Independent Insurance Agents of America (IIAA) Commission to Enhance Agency Value has proven the importance of strong employee relations to the value of an agency. Everyone likes to be associated with a winner, and when your employees read and hear about their own agency in trade publications, they're further motivated. 3. THE LEADERSHIP FACTOR. Most successful businesses are proactive, rather than reactive. Solid public relations within your trade can position you as ...

...ery Hertz location, corporate or franchised, the smart operators contact the local media and offer statements that enable the media...owever, in 'Insurance Agency Promotion and Advertising,' George and Jeffrey Nordhaus offer a list of po...

... . They know the number of homes in a community, the average income level, the number of cars per household, and so on. There are ways of finding out such information, so that you know to whom you are marketing your product. Clubs and franchises have economic data on the community they are serving. If you have a close friend in a service club or a community business that's a franchise (McDonald's, Montgomery Ward), have him or her get some of the data these organizations have on your area ... as a diary. This way your clients will save it and use it year after year. When customers receive a cheaper calendar, it usually gets passed down the line to whoever needs another desk calendar. But a good calendar will become an important part of the operations of that desk, and your agency will earn a place on that desk. Be sure to choose a calendar that you can obtain easily every year. You should require a guarantee from the supplier so that you can always get a particular calendar. Recently we ... three striking calendars, only to find out that they were not continued the following year. DIRECT MAIL LETTERS Direct mail can do a number of things. It can tie in with radio ads, newsletters, and newspaper ads. Direct mail can be used to combat competitors and specialty houses, and define your territory. If you've recently moved your office or you are just opening up, a general mailing to everyone in your neighborhood is the best advertising you'll ever do. For example, several years ago we opened a branch office ...

... some conclusions about the future. AGENCY BUYERS Agency buyers have generally fallen into three categories: Banks attempting to diversify their sources of income and product offerings; National brokers seeking to enter new geographic areas, enhance growth by combining offices, or gain expertise that can be franchised throughout the broker's organization; and Regional agencies/brokers planning to enter new areas or grow large enough to ensure long-term viability with clients and carriers. The stock price and market capitalization of many banks have suffered significantly during the past 12 months with the softening economy ... as insurance to refocus on their core business — banking. The net impact of these changes will vary from bank to bank. Most will continue as active acquirers of agencies, even if there's a short lull in the pace of activity as banks concentrate on their core operations, while letting the rapid changes in the insurance business settle down. While the stock price of banks has generally declined, the stock price and market capitalization of the alphabet houses, especially those who are active acquirers of agencies, have gone up significantly. Brown ... predictable life cycle that includes addressing the succession of ownership. In 2000 and 2001, many principals accelerated their plans for selling because the valuation of their business, as a multiple of revenues and earnings, reached 15-year highs. A recent study by the American Bankers Insurance Association in conjunction with Reagan Consulting reported that of agency acquisitions by banks in the prior 12 months, 63% were completed at multiples of 1.5 times revenue or more and 27% were completed at multiples of 2.0 times revenues or more. Pricing at these levels has ...