Services
- Buyer Consultation
- Seller Consultation
- Financing Arangements
- Negotiation Analysis
- Contractual Review
- Dissolution of insurance agencies
- Expert witness testimony
- Appraisal
- Industry Valuation
- Buy Sell Agreements
- Producer compensation agreements
- Perpetuation Plans
- ROE Return on Equity
- EPS Earnings Per Share Analysis
- Return on Investment (ROI) analysis
- Letter of Intent
- Earn Out provisions
Earn out Provisions
Price and terms are the key parts to a successful transaction but an earn out can result in an increase in the average multiple at which transactions have been executed. Earn outs are usually not guaranteed, the price actually paid for the agency may be lower than the multiple indicates if the earn out benchmarks are not achieved. Rewarding key personnelwith earn outs is usually the best way to maintain the customer base and keep a transaction on schedule.