We may be going into a period of increased advisor oversight and compliance monitoring. In this dynamic environment, an MGA's ability to adapt to new regulation quickly and cost-effectively has a direct impact on its valuation.
If an MGA has already established protocols to integrate potential future mandates, its margins will most likely be higher post-regulation change. In such an unpredictable environment, this gives an MGA somewhat of a competitive edge and thus impacts the valuation.
It is also important to research whether the MGA has had previous issues with compliance and regulation, or if it has a spot-free record.