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... , contingent income, and investment income. Revenue that's not recurring includes first year Life commissions, fees for one-time consulting projects, or bonus income for a book rollover. Commission from brokered business is another example; the outside producer who places the business, not the agency, has control and ownership of the account and determines where it's placed. We make adjustments for contingent income as well, since historical levels might not be sustainable. For example, a lead carrier that might comprise the bulk of an agency's contingent income can pull out of a market or line of business, causing an agency to lose top accounts and volume. From an owner's perspective, the objective is to minimize the downward adjustments a purchaser might make to revenue. To accomplish this, you'll need to demonstrate a track record ... program, one-time purchases of major office equipment, or producer commissions paid for non-recurring Life income. TRACKING DOWN EXPENSES Because adjusting for unnecessary and non-recurring expense items benefits owners when valuing an agency, keeping track of these items is critical. Some expenses, such as country club dues and season tickets, are easy to track and quantify. Other expenses, such as flying first class or staying in luxury hotels, will be more difficult to quantify. Other expense items that you should track include dues, subscriptions, charitable contributions, professional fees, and outside services. These items often contain one-time business expenses. Another major area of adjustment is owner compensation. It's important to have a schedule of owners' income that delineates between production compensation, management compensation, and profit sharing. Typically, one of ...

...contingent income as well, since historical levels might not be sustainable. F...ing first class or staying in luxury hotels, will be more difficult to quantif...