The value of an insurance agency can be as mythical andmysterious as sightings of the Loch Ness Monster. When you dig intoassumptions behind the numbers, the reasoning can be very murky andconfusing.

It doesn't have to be that way. A solid valuation should steeraway from anecdotal information and concentrate on true qualitymeasures that are the hallmark of a good service business.

Each year, WFG takes a look back at transactions from theprevious year, and evaluates any trends that may be emerging. Whatwe saw in 2005 was a transaction market focused on four keysegments.

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