Expert insurance agency valuation services– from the initial interview through a detailed report and effective presentation comes from years of practical experience not a text book. It requires insurance agency experience, technical valuation expertise and an understanding of local law.
Most insurance agency valuation reports and opinions are vulnerable. When anticipating litigation, undertaking financial planning or facing tax court challenge you cannot afford to take shortcuts.
Identifying the Insurance Valuation Expert and an Effective Valuation Report
Insurance Expert Qualifications
Unfortunately, data related specifically to the operation of privately-held insurance agencies is minimal at best and too often flawed. Accordingly, data used to support key assumptions should be specifically cited as to source and reviewed for appropriateness.
To be successful on your behalf, the insurance valuation expert you select MUST meet 3 criteria:
- He/she must have in-depth knowledge of the internal workings of an agency and a wide-ranging understanding of the insurance agency environment and insurance business cycle.
- He/she should meet the standards of Rule 702 of the Federal Rules of Evidence. Amended in 2000 to expand Daubert1,it is the standard in federal courts and over half of the states regarding all expert testimony.
- He/she should have actual courtroom experience.
Characteristics of a Quality Insurance Agency Valuation Report
- As an absolute minimum, the insurance business valuation report will deal with the issues cited in Rev Rul 59-60 and its progeny.
- A quality report will take no shortcuts especially regarding on-site visitation, the calculation of sustainable (normalized) agency earnings and the application of premia and discounts.
- An invulnerable report will rely on alternative valuation methodologies, each of which is appropriate in the valuation of an insurance agency.
- A superior report will support all key assumptions with citations to source and appropriateness.
- A successful report will confirm the extent of the insurance agency’s “ownership” and control of all expirations.
- A defensable valuation report will consider the implications of “local” law especially as it may affect the emphasis on methodology, the applicability of certain discounts and the report’s overall presentation.
Why Choose Moat Associates, LLC for Your Insurance Valuation Services
As an experienced expert witness on insurance agency valuation, Mr. Moat may be your best choice.
- A lawyer with years of insurance experience as an agent, company officer and director;
- The founder and Chief Executive of The Manhattan Group, Inc., which specialized in insurance agency mergers and acquisitions, valuation and consulting.
- A man who understands the nuances of the agency business and the insurance cycle,
- An experienced insurance expert witness.
Mr. Moat’s insurance company valuation experience derives from over 20 years’ experience in “doing deals.” His valuation reports comply with the suggestions of Rev. Rul 59-60 and their thoroughness has been said to have been the motivation for numerous settlements.
To obtain a FREE preliminary estimate of the current value of your independent insurance agency you should try our agency valuation calculator. >> Insurance Business Valuation Tool
To discuss your need for insurance agency valuation services in confidence, call Doug Moat directly at 843.705.2851 or 914.466.3711.
For a selected list of recent cases please visit our About Moat Associates page.
Articles Related to Insurance Agency Valuation:
1 Daubert v. Merrell Dow Pharmaceuticals, Inc., 43 F.3d 1311 (9th Cir.1995)
Steven Goldstein, General Counsel Tokio Marine & Fire 212–297-6983