Volume VI, Issue V

To kick off this summer, the 2nd Quarter Allstate Agency Value Index was released last week. This Value Index highlights recent price trends and a brief conversation regarding the available outside buyer pool.

AAVI Preview

The "slight tweaks" Allstate has made to their onboarding requirements in combination with minimal merger activity and fewer existing Agent book purchases has reduced the pool of approved buyers in the second quarter of 2017.

The inclusion of some level of current Agents purchasing additional business, and the option for outside buyers to purchase and/or merge multiple smaller sized agencies proved to be healthy for Allstate agency values. Healthy competition on the buying side is good for both buyers and sellers and values in general. "Simply put, fewer approved buyers in the Second Quarter of 2017 was a contributing factor for the reduction in Allstate Agency values."

Paul Clarke also broke down each Allstate agency size category and went a little deeper into why the multiples changed in the second quarter. Read the full article here.

18 Years of Tracking Allstate Agency Values

Another phenomenal tool for both buyers and sellers is Paul Clarke's 2nd Quarter 2017 editorial, referencing the past 18 years of tracking Allstate agency values and their stability, despite changes in the economy. Make sure you read the article in full as it's full of information you don't want to miss.

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