Overview
If you are contemplating selling your agency, issuing stock in connection with an acquisition, or conducting internal stock
sales related to succession strategies, equity related compensation plans, or ESOP financing, an independent, third-party
fair market valuation by a seasoned and experienced insurance professional is a must. As a leading financial advisory
firm that services only the insurance industry, our experience, knowledge, and expertise is unmatched in determining the
accurate and realistic value of your agency.
Individualized valuation services are based on your needs, such as:
- Mergers and Acquisitions
- Equity Compensation Plans
- Buy/Sell Agreements
- Transaction Fairness Opinions
- ESOPs
- Personal Goodwill Valuation
- Shareholder Disputes
- Expert Witness Testimony
- Litigation Support
- Intangible Asset Valuation
Types Of Valuation Reports
Hales specifically offers two types of valuation reports, depending on the needs of the client and the purpose of the
valuation. A brief description follows:
Benchmark Valuation
Our "benchmark valuation" generally is used to give a client a low-cost report that provides an approximation of the fair
market value range of the agency. The benchmark valuation considers quantitative and qualitative factors along with
other insurance-specific intangible values, which are critical to assess in determining the appropriate value of an agency.
We carefully blend various valuation methods used by buyers and sellers (e.g., capitalization of earnings and comparable
market transactions), and our benchmark report provides the client with a fair market valuation range in addition to the
underlying valuation assumptions and rationale.
Fully Compliant Valuation
A "fully compliant valuation" is fully compliant with Revenue Ruling 59-60, other pertinent Revenue Rulings, USPAP
standards, and NACVA Standards of Development and Reporting. The report provides an opinion of value in addition to a
comprehensive analysis of the agency, industry information, economic data, and financial statement analysis. A fully
compliant valuation is useful in determining value when the client is involved in taxation, litigation, shareholder disputes,
ESOPs, estate and gift valuation, and divorce valuation situations.
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