Financial Model, Financial Services, Insurance, Marketing Agencies, Media, Service Businesses

5-year Financial Projections, Break-Even, Business Plans, Business Valuation, Cash Flow Projections, Dashboard, Debt Amortization, Debt Schedule, Debt Service Coverage, Excel, Financial Feasibility, Financial Model, Financial Modeling, Financial Planning, Financial Projections, Financing, Forecasting, KPIs (Key Performance Indicators), Loans, Mergers and Acquisitions Model, Payback Period, Pro-Forma, Profitability Analysis, Revenue Projections, Scenario Analysis, Sensitivity Analysis, Uses and Sources of Funds

Underwrite an independent P&C insurance agency acquisition the way an SBA lender actually will — not the way the broker’s add-back sheet wants you to. This is a lender-ready acquisition model for a single property & casualty agency, built around the two things a real underwriter tests and a broker quietly overstates: which commission income you can actually bank on, and what it costs to replace the owner-producer’s personal book once you own it.

A retention-driven commission engine. The book is built bottom-up by line — personal and commercial premium times each carrier commission rate — then rolled forward the way an agency really compounds: next-year commission equals retention times the book plus new business. Retention is the single number that turns a book of business into an annuity, so it drives the renewal-earnings coverage, the down-case and the value.

Honesty part one: the contingency exclusion. Contingent and profit-sharing commissions are real money, but they are volatile (driven by carrier loss ratios and volume), not contractually guaranteed, and lenders do not underwrite them as a repayment source. The model breaks them out, normalizes them to a 3-year average, and excludes them from the cash flow the DSCR is built on — because pricing or borrowing against a bonus that a single bad-loss year can wipe out is the fastest way to overpay for an agency.

Honesty part two: the owner-producer replacement. In most small agencies the owner personally produces and services part of the book. A non-producer buyer must re-hire that at a commission split, so it is deducted to reach Adjusted EBITDA. The model shows the TRUE DSCR (1.44x on the base case) right next to the NAIVE broker-style DSCR (2.52x). The gap is the seller’s own production — exactly what separates a financeable agency deal from one that gets declined.

What you get: a 10-sheet Excel workbook (Google Sheets-compatible, no macros): a Commission & Retention Engine, an SDE & Valuation tab with the owner-producer add-back, an SBA 7(a) capital stack (80/10/10) with a full-standby seller-note lever, a DSCR & Debt gate (true vs naive DSCR, debt yield, renewal-earnings coverage 2.35x, and a down-case DSCR of 0.87x when a producer leaves), a 5-year P&L, Returns & Exit, a Dashboard with a DSCR bankability grid, and a Benchmarks & Sources tab. A multi-page PDF user guide is included.

Honest by design. SDE margin about 31% and Adjusted EBITDA about 18% (below the 26% top-tier Best-Practices number); a searcher prices at ~2.0-3.0x SDE, and the aggregator’s 8-11x EBITDA is not sold as your return; contingent income is excluded from the DSCR, not smuggled into it; no IRR is headlined because on one small deal it is hostage to the exit multiple. Machine-verified across three engines, zero errors.

Educational planning tool, not financial, legal, tax or investment advice. Verify the seller’s carrier statements, the 3-year contingency history, producer non-competes and your SBA term sheet before relying on any number.

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