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The Mixed-Perpetuation Sandwich: Inserting A N...tween two generations of family, two things are crucial: candid communication and guidance. Don't sweep things under the rug to protect someone's feelings. Get the help of one or more experienced advisers who'll give objective input on crucial issues of economics an...

... will enhance profitability, and, thus, the value of your agency. You'll want your agency to be as valuable as it can be in the outside market — and that means making a commitment to professional management practices, sound financial management, growth, and profitability. However, there's another factor to consider. Astute buyers are looking for more than higher revenues. An acquisition should enhance the carrier mix, add talent or expertise in a particular area, expand the marketing territory, etc. I see potential buyers turning down acquisition opportunities that don't meet their strategic objectives. Because you can't assume your agency will be attractive to every potential buyer, you'd be wise to develop a plan for internal perpetuation. A good perpetuation plan will help you achieve both your personal and professional objectives. You'll need ... and E&O Technology Life/Financial Services Glossaries Management Resources & Links Categories Popular Recent All Back Agency Principals: Don't Put Off Perpetuation Planning!4/30/2013 12:00:00 AM by CompleteMarkets Editor , Sharon Cunningham This content has not been rated yet. One of the most critical issues facing the Independent Agency System is the need to transfer stock and plan for the smooth transition of ownership. Without a perpetuation plan, the departure of senior owners often creates a financial hardship for new owners who are left with significant debt service or poor preparation to run the business. This document by Sharon Cunningham should help get your plan started. As I travel across the country, I find few agencies with written perpetuation plans. I'd advise agency principals who don't have a perpetuation plan ...

...urposefully. Bosses must not send mixed signals. One of my clients desperate... the way we've always done it' circled in red with a red line running diagonally through it. Everybody in the organization wears one-it's a constant, light-hearted reminder that things are changing. Change is forever with us. Why not make the experience as rewarding and pleasant as possible?   Emily Huling, CIC, CMC, president of Selling Strategies, Inc., helps the insurance industry increase sales, improve customer service, and improve the bottom line. She can be reached at (888) 309-8802 or emily@sellingstrategies.com.

...et sale. An experienced planner can mix and match them to generate substantial savings. Non-compete agreement: If the sell...rrison, CPA, can be reached at the Business Transition Network, Bellevue, WA), Phone ...

...s just emerging, it's doing so with mixed results. During 1999, insurance and annuity premiums produced by...might soon see a more nearly level playing field. Any bank that views insurance distribution as a strategic n...

... most to smaller and rural agencies whose carriers are demanding more from them than they can produce. Clusters can provide: Increased premium volume-Increased premium volume means an increase in an agency's clout with its carriers. Carriers may demand $500,000 or more in premium volume from agencies-something many rural agencies simply can't provide. A cluster helps such agencies group together to provide more premium volume and a better market mix. Increased specialization-Small agencies may be too busy working on standard lines to specialize. With a cluster arrangement, specialization is now possible. Improved efficiency-Bigger can mean better. Larger agencies can streamline operations, thanks to more staff. Such areas as prospecting, solicitation, applications, quoting, rating, and placement can be simplified. As part of a larger entity, a member agency may be able ... all parties. Carriers should be informed of the cluster's objectives, mix of business, marketing initiatives, and forecasts for that particular carrier. You should meet with carriers personally to establish a relationship between them and the cluster. Follow-up meetings should also be set. Agency staffs should receive similar preparation. Because a cluster allows for employee consolidation, you should identify those employees who will not be making the transition before holding a meeting. At the meeting, let employees know that their duties and responsibilities may change and to consider the changes as a new opportunity for personal and professional growth. Also let them know: Location: Whether your agency is moving, the other agencies are moving to your location, or no move will be made, inform your staff. Accounting and Records: Accounting and records ...

... very worst performers combined with those in the middle to come up with numbers and percentages. To convert the guidelines to high performing levels, increase the averages by 1.25% . It's also critical to use a comparable peer group for making the comparisons. Chart A presents some major characteristics of the compiled composite groups. Generally, larger agencies are more Commercially oriented and have larger accounts. If your agency's mix of business or average account size differs from that of agencies with comparable revenues, it's more appropriate to select a peer group that mirrors your type of business. In some cases this peer group should be used with all of the comparisons. For other charts it might be better to switch to the larger agency composite group. Use a common-sense approach to evaluate for your agency. Chart A & ... in many cases moving them into production. The percentage of agency employees involved in customer service has remained the same for several years. Administrative employees as a percentage of agency personnel have increased slightly over the past several years. More firms are taking advantage of upload/download capabilities and transactional filing, and some customer service positions have been turned into data-entry jobs. The increase in administrative personnel reflects this transition, taking routine tasks away from technical insurance personnel and producers and freeing them up to play a more active role in assisting customers. Chart C Agency Revenues: Less than $600,000 $600,000- $1.5 million $1.5 million- $4 million More than $4 million % in Production 36% 32% 31% 29% Revenue/Producer $200,327 ...