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Agency Profile Report
“There are inherent dangers when a company is acquired, not only for the selling company, but for the acquiring company. It is not uncommon for the buyer to require the seller purchase several years of extended reporting coverage. This is because the buyer, when either acquiring the assets or the stock transaction, wants no exposure to any known or unknow liabilities created by activities before the acquisition.
We’ve all seen companies get acquired, with the seller invoking whatever extended reporting coverage they can acquire, sometimes at a significant price. But that is not the only problem, and this is where the approach and analysis become important. Asking the right questions is thus necessary to provide the appropriate financial protection to those involved, with the avoidance of any error and omission claim that might be made against the broker, despite whether they are simply following an “order take” standard or not.”
When an agency is marketed to the right potential buyers, with a strategic fit that maximizes—not just value—but carriers and culture, “value” takes on a whole new meaning.
R. MICHAEL STROMAN SUMMARY R. Michael Stroman has over 42 years of experience in the insurance industry. Currently serving as an industry consultant, he assists insurance purchasers, insurance companies and agents, and their attorneys, accountants, and other industry advisors, with agency management, claims consulting, underwriting practices, standard of care, and other technical assistance. Mr. Stroman…
Chris started INS Capital Group (ICG) when he saw a need for a quality, professional advisory firm to assist business owners in the insurance industry with exit planning, M&A and capital raising activities. Chris’ career in the insurance industry has focused on mergers, acquisitions and financing options for agents. Prior to founding ICG, Chris worked…