Ten years ago, the upper end of the valuation range fortop-performing agencies was 1.5 times revenue. Today the upper endhas increased to 2.0 times revenue, and even occasionally higher.Why have agency values, expressed as a multiple of revenue,increased in many cases by 33 percent or more?

There are two basic reasons agency values have increased sodramatically:

o Demand for agency acquisitions is stronger than it has everbeen, due to the all-time high number of public brokers, banks andothers competing for acquisitions.

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