July 01, 2022

The Wallace Sessions Part 1

23 minutes

In this episode of The Power Producers Podcast, David Carothers and co-host Kyle Houck interview Carey Wallace of Agency Focus. Carey talks about the importance of EBITA and how to determine the true value of your agency.

Episode Highlights:

David shares that Florida trucking insurance is doing great in the industry right now. (4:08)

Carey shares her financial background and how she started in the industry. (7:09)

Carey explains that carriers and agency owners must think in terms of revenue, as it is the key to driving the business. (9:11)

Carey shares that they have helped build a program that is targeted at looking at all parts of being an owner. (13:28)

Carey shares the numbers people need to focus on to determine their agency's value. (15:25)

David mentions that most people think that if a problem comes in, they can just sell their way out. (17:30)

Carey talks about looking into past revenue before making an investment in a company. (19:28)

Carey discusses the importance of EBITA and explains that you have to think in EBITA, in order to make a good, sound business decision. (21:08)

Tweetable Quotes:

"I see myself as being a business partner to agents that want to transition, want to grow, and want to maximize the value of their asset and run it like a business." - Carey Wallace

"If you're going to make an investment, the revenue is one data point. But what's the predictability that that agency is going to continue to produce that way? What's their retention rate? Are they growing? There are so many things to ask." - Carey Wallace

"It's not your top line revenue, it's the profit inside that agency. That's the number that gets multiplied by a factor in order to determine the value of your agency." - Carey Wallace

Resources Mentioned:

Carey Wallace LinkedIn

Agency Focus

David Carothers

Kyle Houck

Florida Risk Partners

The Extra 2 Minutes

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By David Carothers

4.9

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