As an insurance agency owner, you’ve worked hard to build your business and generate income. Now, you’re considering selling your agency and want to ensure you get the maximum return on your investment.
An insurance agency’s value is often based on its “EBITDA” — or earnings before interest, taxes, depreciation and amortization. But to get a more accurate market value, you would need to adjust this number, taking out any income or costs that won’t likely continue after the sale. This recalculated number is called your company’s “pro forma EBITDA.”
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