Clueless2015
New Member
- 4
My history: Former Allstate, now Independent
I'm struggling to understand the valuation differences between Allstate and the Indy world.
Allstate Data Source: PPC Loan 2019 Q2 Report on closed transactions
Indy Data Source: Agency Equity listings
Allstate 2019 - Q2
0-100,000 = 2.17x revenue
100,000-200,000 = 2.35x revenue
200,000-300,000 = 2.57x revenue
300,001+ = 2.98x revenue
Indy Listings:
0-100,000 = 1.48x revenue
100,000-200,000 = 1.84x revenue
200,000-300,000 = 1.89x revenue
300,001+ = 2.66x revenue
The gap narrows at 300k+ but still is significantly less than Allstate. Am I a fool if I'm willing to pay 2.5x revenue for anything in my state that hits the market in that 150-250k range? What am I missing that drives the lower multiple?
I'm struggling to understand the valuation differences between Allstate and the Indy world.
Allstate Data Source: PPC Loan 2019 Q2 Report on closed transactions
Indy Data Source: Agency Equity listings
Allstate 2019 - Q2
0-100,000 = 2.17x revenue
100,000-200,000 = 2.35x revenue
200,000-300,000 = 2.57x revenue
300,001+ = 2.98x revenue
Indy Listings:
0-100,000 = 1.48x revenue
100,000-200,000 = 1.84x revenue
200,000-300,000 = 1.89x revenue
300,001+ = 2.66x revenue
The gap narrows at 300k+ but still is significantly less than Allstate. Am I a fool if I'm willing to pay 2.5x revenue for anything in my state that hits the market in that 150-250k range? What am I missing that drives the lower multiple?
