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Understanding EBITDA: The Key to Accurately Valuing Your Insurance Agency

AAI

When it comes time for independent agency owners to retire, many look back to how they first bought their book of business — often at a simple multiple of revenue—and assume the same strategy will work today. But in today’s marketplace, that approach can be financially risky. Why? Because buyers are no longer just looking at revenue. Instead, they’re zeroing in on a specific financial metric: EBITDA.

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