The focus of the MGA business model must be more advisor focused; therefore, the valuation also must be advisor focused. An MGA has a reliance on the loyalty and strength of its customers, which are its advisors.
When you understand the true value of the advisor books within an MGA, you can identify the internal organic growth opportunity and the overall quality of the business. This is done by looking at a cross-section of the advisor books.
During an acquisition, understanding the true value of advisor books will give you a competitive edge in the marketplace.