Many people disagree on the best moment to buy or sell an agency, especially given the current state of the economy.

On the one hand, the merger and acquisition (M&A) market is still very active, with 500 agency deals taking place in the first three quarters of 2022, according to investment banking and consulting firs. In fact, deal volume in Q3 2022 was 9.7% higher than the previous five-year average, and the second-highest recorded total for the quarter.

On the other hand, rough seas are in store. When only considering transactions involving property and casualty, M&A activity decreased from Q3 2021 to Q3 2022 by 14% year over year.

Things To Consider

  1. Your agency’s growth and profitability
  2. Current economic Conditions
  3. Market factors like rate increases

Our parent company, Davidson Stewart Morelock, has been an independent P&C agency since 2008, with our principals offering over 50 years of combined experience in the insurance industry. We have successfully worked with a number of agencies creating mutually beneficial solutions for owners, partners, and buyers.