Captive agency

Whats the standard multiplier when it comes to valuing a captive agency like farmer's? 2.5x annual net? 3x annual net? More?

What are key numbers or areas to review (specific to a Farmer's agency) when evaluating current value and future success?

Below is the last 3 years. I'm trying to get comps and/or opinions based upon current market conditions and the condition of Farmer's as a company right now. (Seems a little rocky)

I've been an agent at a broker for 4 years. This seems like it'll pay for itself while still cash flowing 6-7k after debt service from just the residuals. It's a 17 year old business with a great location and reputation. The guy is old and retiring. Kids are almost 30. He's been coasting the last 3-5 years and there seems to be room to grow 20-30% within a couple of years if I hit it hard.

There's a lot to think about and it's a big step going from agent to agency owner… especially in this market. If it wasn't as old and established as it is, with the cashflow it already has, then I wouldn't even consider it in this market.

Any help from current and/or past owners or even other people who are buying and selling agencies would be greatly appreciated!

2022 Total was 226k and net/take home was 166k. Service 166k. NB 21.5k 2021 was 203k/131k. service 156k. NB 22.1k 2020 was 185k/128k. service 162k. NB 2.2k

PS… the sale includes office lease, furniture, equipment, everything… turn key takeover. Located in midwest.

submitted by /u/Federal-Frame-820
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