- Valuation pricing is driven by the underlying value of the business and by market competitive forces, both of which have many contributing factors.
- Buyers, in particular smaller and less capitalized firms, need to be careful not to get carried away in pricing competition for a seller’s business, only to find out later they can’t afford to pay for it.
- Firms need to be steadfast in setting realistic valuations for internal transactions versus getting overly swayed by actual and anecdotal pricing stories of other agency transactions.
- For the agency owners waiting for the “right time to sell” before jumping on the bandwagon, now is the right time, Menzer says.
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