Home › Valuation Factors to Consider for Insurance Businesses

Are you looking to find insurance agencies for sale in San Antonio, TX? Before you do, you have to know if it’s profitable. With the help of a professional, you can determine the value of your prospective insurance agency. 

It’s important to note that certain factors have to be taken into account when you’re evaluating the price. If you’re new to this, you may want to enlist the help of an insurance consulting company with a solid background in insurance business valuation.   

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Key Factors to Consider for Determining Insurance Business Valuation

Cash Flow

You’ll have an idea about the inflows and outflows of cash over a set period if you check the cash flow statement. This should give you an idea of how much cash the insurance business can generate. Keep in mind that the company’s current cash flow is discounted for its value in the future.   

Multiples of Earnings

You’ll have to look at multiples of earnings per share of stock if the insurance company you’re looking to purchase has shareholders. This figure isn’t considered the same as any dividends because it only shows you the earnings of every shareholder (EPS). A company is valuable if its EPS is high.  

To determine the earnings, simply take profits or net income and reduce them by taking out taxes and interest. Once you get the final number, multiply it by the number of shares.  


A balance sheet shows you everything an insurance business owns. These assets include cash, vehicles, equipment, supplies, accounts receivable, and land. Moreover, goodwill or the value of the company’s client base, and intellectual property are intangible assets that have value as well.  

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Looking for Insurance Agencies for Sale in San Antonio, TX?

The team of specialists at Energia Consulting Partners LLC is committed to helping you understand the value of achieving success. Contact us today to schedule an appointment.