Capital costs are higher than they have been in recent memory and likely to rise further, putting pressure on insurance agency valuations-both as a means for buyers to offset increased financing costs and because of diminished competition for acquisitions, with some serial acquirers finding additional capital prohibitively expensive.

For those seeking to sell all or part of the insurance agency they've built in this current financial environment, here are some practical considerations to ensure you receive full value for your business.

1. Don't torture the pro forma. Establish a reasonable basis for principal compensation going forward and adjust trailing results accordingly. Reduction in other expenses should be rational in seeking EBITDA credits. Seek defensible and sustainable adjustments, as credibility for those decisions matter significantly more than in previous years.

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2. Negotiate performance consideration or earnouts more aggressively. While acquisition platforms are leery of highly engineered pro formas (rightly so), the signal value of a selling shareholder pushing for financial windfalls associated with future growth is a favorable indicator…it may even help to improve the initial offer.

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3. Consolidate your systems, data, and business information. The more adaptable and "plug-in ready" you are regarding agency management and financial platforms, the more potential buyers will perceive a smooth integration process and a willingness to adopt standard business platforms. The better the data you can produce, the more confident acquisition platforms will be in structuring an offer.

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4. Be sustainable. Sustainability – both in terms of perpetuation and production. Can you tell a story that causes an acquisition platform to see durable, reliable growth in the asset moving forward – as well as resiliency and diversification in terms of production potential? Who will succeed you if something happens to you?

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5. Have a strategy around production. Who are your producers, and will they stay around? Having thoughtful answers to these questions will lend legitimacy to the business you've created and reduce doubt regarding the payment of a top-of-market multiple.

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6. Mindset and insight. Do you understand and subscribe to the objectives of the acquisition platform you are negotiating with? The perceived alignment will ultimately go a long way in influencing a buyer's willingness to offer a strong price for your business.

The sale of a business is the most significant wealth-creation event in a career or lifetime. Given this, ensuring that you receive maximum value for what you've built should be a top priority.

If you need assistance preparing for that event, whether to internalize any of the above concepts or otherwise, reach out to a qualified advisor with the requisite experience to support you throughout the process.

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