From ITC Agent Conference 2016... This session is designed for all agency principals, regardless of where they are in their professional life, as "optimizing agency value" is not just a selling thing. In this breakout, you will learn ways to improve your overall business, while increasing value and becoming better prepared for market challenges facing our industry today.

1. Mordy Rothberg
Optimizing Agency Value
Thursday, April 21st

2. 2
Mordy Rothberg
Founder & Chairman
Mordy Rothberg has over 20 years of business development and strategy experience
including the last 9 in the insurance brokerage business. He previously formed a joint
venture with Cisco on the creation of Adir Technologies where he raised $70 million
from Cisco, Softbank and others in multiple rounds to spin off technology assets from
Net2phone. Mordy was a principal at Net2phone where he raised funds from multiple
world class investors including AOL, NBC, Yahoo and Softbank; AT&T ultimately bought
40 percent of Net2phone for $1.4 billion. Before Net2Phone, Mordy served as an
Executive Vice President at IDT Corporation, where he spearheaded its international
sales efforts.

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Confie: Who We Are
• Call and Web Centers sell in 49 states
• 5th Largest Privately-Held Property / Casualty Agency in U.S.*
• 18th Largest Global Broker**
• 1st Largest US Personal Lines Insurance Broker***
• Since inception in 2008:
– Grew revenues to $500M+
– More than 680 retail locations across 18 states
– Experienced growth in the most challenging economy; both organically and externally
through acquisitions
– Successfully completed over 100 acquisitions (Over 23 in last 12 months)
• Call and Web Centers sell in 49 states
• Experienced and entrepreneurial management team coupled with a scaled infrastructure and
proven business model
• Well-capitalized for future agency acquisitions
• Acquisition interests include non-standard auto and standard-preferred personal lines and
small commercial lines agencies
Source: * Insurance Journal, August 4, 2014 / ** Best’s Review, July 2014 / *** Insurance Journal, November 17, 2014

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Optimize Value & Plan for the Future
• Q: How many of you are absolutely satisfied with the income your
business generates?
• Q: How many of you plan to retire someday?
“Who is a wise man? One who can see the future!”
• Prepare Now
– Internal perpetuation
– Merger/buying other agencies
– Selling your agency
• Local Buyers/Internal Buyers
• Merger Partner
• Regional/National Buyers

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Top 10 Items for Sellers to Prepare
their Agencies for Selling
1. Report all your income on Profit and Loss / Tax Returns, including fees
2. Trim the Agency of expenses that are not needed
3. Have a working knowledge of your Profit and Loss statements
4. Be able to identify the expenses tied to the Seller for mostly his benefit and
not operationally required to operate the Agency moving forward.
– Autos
– Country Club dues
– Retirement
– Key man
– Family Medical expenses
– Etc.

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Top 10 Items for Sellers to Prepare
their Agencies for Selling
5. Do not pay cash to employees to circumvent legal employment practices
6. Implement a standard incentive plan with employees if applicable. Refrain
from multiple plans for same level of employee
7. Producers
– If vesting involved, have a written contract on perpetuation of book. First
Right of Refusal, etc.
– Specifically outline ownership
– If new producers, have a written plan with timelines on transitioning to
commission only and how the draw is handled. Will it be paid back thru
future commissions?

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Top 10 Items for Sellers to Prepare
their Agencies for Selling
8. Organize Due Diligence items for revenue verification – Insurance Carrier
Commission Statements for Trailing 12 Months.
9. Have staff sign non-solicit agreements if licensed
10. Understand any contracts you may have with Affiliations/Clusters/etc. for
access to insurance carriers, pooling of volume for profit sharing, etc.
– Is their first right of refusal?
– Is all your business clearly sub coded?
– What are the notice provisions?
– Are there any roadblocks in transferring the business to a new owner?

8. 8
Seek Consultation
“You don’t know what you don’t know.”
• Accountant
• Attorney
• Insurance Consultants
• Business Brokers

9. Thank You for
Your Time!!!
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Contact Information
Mordy Rothberg, Chairman
Office 201.880.7902
Cell 201.421.6293
mordy@confie.com
www.confie.com