Client Background:  
The head of a well-established, national, life insurance Brokerage General Agency approached PPI. They had not been looking to sell the agency and had rejected offers from industry  consolidators.  Another entity approached them where both sides saw as an excellent strategic fit.  The problem was that this firm had looked at the agency’s financials and offered a valuation that was lower than acceptable to the owners.

PPI Approach:
PPI undertook an extensive review of several years of financials and conducted in-depth interviews with the agency’s senior management team.  At the end of that process, PPI created reasonable projections and logical explanations which demonstrated to the acquirer the real value of the agency.  PPI's role as a consultant, was to then brief the client before every call with the acquirer and debrief right afterwards.

Results:
The negotiations resulted in a new offer that was 2X the original. PPI has been retained by the client until the end of the earn-out period to help them adjust to the new situation. The earn-out period is still on-going and based on the experience to-date, both sales results and synergistic benefits have exceeded projections and the client expects to realize more than double the original offer. Both sides are very happy with these results.