HENDERSON, Nev.–The combination of the ongoing credit crisis and losses suffered because of the subprime mortgage meltdown is translating into lower sales prices for agencies, say merger and acquisition consultants.
In interviews held during the 95th annual meeting of the Council of Insurance Agents & Brokers in Henderson, Nev., executives from two major consulting firms said the current economic environment has reduced the number of players in the M&A field, meaning sellers will no longer see the high multiples they did last year.
There are more sellers than buyers, said John Wepler, president of Willoughby, Ohio-based Marsh-Berry, and because of that, the value of agencies is coming down.
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