Florida independent agents and brokers contemplating mergers or acquisitions are at a crossroads — a seminal moment in time that brings an end for some and a profound new beginning for others. Consider these current financial and market conditions:

1. The average enterprise (stock) value (including terms) for agencies has fallen 25 percent since the peak of mid-2007, and the long-predicted hard market in Florida is not going to materialize anytime soon to help that situation.

2. Selling an agency these days means much less cash up front, significant pressure on earn-outs, and claw-back provisions in the first year or two if a minimum performance assumed in the valuation is not achieved. Multiples of EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) are now around six, down from the 7.5 range of not long ago, and still falling. This is a mirrored condition of the mid-1970s — and those 5.25 multiples lasted for nearly two decades. In short, it is a terrible time to sell except for one thing — in the next few years, it is going to get worse.