The MGA valuation can vary dramatically based on the composition of advisors by age and degree of loyalty. We define loyalty as the amount of time an advisor has been with a particular MGA. Depending on where advisors are in the business cycle, there will be different implications for the MGA.
If an advisor is approaching retirement, they may be looking to transfer their book soon. If they do so, the buyer may not stay with the same MGA. Therefore, this must be factored into the valuation of an MGA.