How to Increase Your Shareholder/Ownership Valuation

If you are like most closely-held or private corporations, your most valuable asset is your shareholder/ownership valuation. This multiple of your EBITDA (or profit margins) is what investors and/or potential buyers are most interested in.

Even if your company isn’t currently for sale, you know how important it is to keep your valuation up. This important business metric is used in stockholder buybacks, banking negotiations, and your personal wealth assessments.

The most effective way to improve your valuation is to stop the existing Financial Leakage that resides inside your current business model. It’s the single most important business objective you can accomplish in short order this year.

Think about it this way: If your firm currently has $200,000 of Financial Leakage (the hidden costs related to productivity and operational inefficiencies when you experience a claim or loss) and your valuation multiple is 5x your EBITDA*...

You’re leaving $1,000,000 of Shareholder/Ownership Valuation on the table.

How to Increase Your Shareholder/Ownership Valuation

To prevent this valuation loss, you should immediately:

  1. Quantify the Financial Leakage currently inside your risk financing and risk control program. This is a finite, quantifiable, and controllable expense that is keeping you from maximizing your valuation multiple.
  2. Recapture as much Financial Leakage as possible. This has been an impossible endeavor until recently, as that true leakage amount was difficult to pinpoint. Now (with the proper analytic tools), we can assess your Financial Leakage AND (more importantly) create a plan to help you recapture it.

As Analytic Brokers™, we are uniquely qualified to help you reduce your Financial Leakage and improve your Shareholder/Ownership Valuation. When that Leakage returns to your business in the form of improved EBITDA or profits, your Valuation will move upward.

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Are You Chasing the Wrong Risk Financing Rabbit?

For years, insurance brokers have been telling you the best way to reduce your costs is through policy changes, coverage comparisons, deductible options or even program risk retention changes.

None of these options gets to the heart of the matter. They’re all VARIABLES in the cost of the commodity. When you go this route, you’re chasing the wrong rabbit.

It’s time to take your power back by focusing on the cost structure that you can control. Specifically, it’s time to focus on the loss costs and the expenses of managing your program. These costs are usually 30% to 60% of additional cost ABOVE your insurance premiums.

Why don’t insurance providers tell you this?

Are You Chasing the Wrong Risk Financing Rabbit?

Unfortunately, many brokers don’t have the capability to help you focus on these costs, let alone calculate them. So, these costs continue to erode your profits.

Here’s the good news: emergent analytics software is now providing cutting-edge brokers with the capability to provide buyers with in-depth information on their cost structures.

As an Analytic Broker™, we’re uniquely qualified to measure the impact of these exorbitant costs and build a strategy to help you reduce them.

Identifying and tackling these costs will be critical to your business results in the coming year. The amount of EBITDA, productivity, and margins you’re wasting must be determined and reclaimed.

Otherwise, your organization isn’t performing at peak efficiency.

So, if you would like to stop chasing the wrong rabbit and finally understand your TOTAL cost structure and how to improve it, contact us today for an in depth Financial Leakage Report™.

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*Source: TCORCalc® - North America's leading authority on risk management program analytics and insurance industry benchmarks.

5 Critical Questions for Insurance Renewals

This is a busy time of year for you. Aside from year-end tasks and holiday events, many of you are also managing your insurance renewals.

In the past, it was good enough to ask your broker: "Are my coverages adequate?" and, "what’s my premium compared to last year?"

No matter how you slice it, these are the only questions most brokers can answer for you. While their renewal information may contain dozens of pages, the results are the same: Coverages and Premiums. But times are different now.

Your organization has probably changed dramatically in the past several years. Your business metrics are more evolved now, aren’t they? The renewal information provided by most brokers won’t help you measure the effectiveness or business impact of your insurance program.

Stop Your Healthcare Cost Leakage

So, here are 5 Critical Questions you must ask your broker:

  1. What is the impact you have had in the past year on our business results (improved profits, EBITDA, budget accuracy)? Not simply the premiums or claims that have been paid.
  2. What impacts should we expect inside our cost structure in the coming year?
  3. What is the exact cost structure we should apply to our product costs or bid overhead?
  4. What projects will you implement in the coming year to reduce our cost structure?
  5. How can we quantify your impact using benchmark data and results?

As an astute business person, you deserve to know much more than the basics of premiums and coverages. If one of your goals for 2018 is to make business decisions based upon accurate data and quantifiable results, these are the questions you need to ask.

As a Certified Analytic Broker™, we'll answer these questions for you and many more. We’ll attach our answers to your key metrics and help you impact your organization’s cost structure in 2018 and beyond.

Please contact us today for a full assessment of your entire cost structure.

Contact us today

*Source: TCORCalc® - North America's leading authority on risk management program analytics and insurance industry benchmarks.

Stop Your Healthcare Cost Leakage

Your organization is likely hemorrhaging a tremendous amount of capital inside of your healthcare costs. Most organizations have financial leakage that adds an additional 40% to their health insurance expenses.* This leakage has always been there. Until now, it hasn’t been quantifiable.

Why should tackling your leakage be a priority? Well, for instance, if your healthcare insurance spend is $1,000,000, you probably have $400,000 of additional costs that are going unaddressed. (You can adjust this estimate by adding 40% of financial leakage to your organization's actual spend.)

Stop Your Healthcare Cost Leakage

So, where is this money going? And how is it leaking from your financial statement?

Leakage takes the form of direct and indirect loss costs on top of your insurance premiums. These costs are ignored by traditional insurance brokers as they are unable to accurately identify them. Here are some brief examples of direct and indirect loss costs in your healthcare program:

  • Direct Loss Costs – The additional uninsured hard costs that occur each time you have a claim. They include things like sick leave, salary continuation and Family Medical Leave Act expenses.
  • Indirect Loss Costs – The “soft” but real costs that impact your organization with each and every claim. They include training, temporary workers, brand loss, and absenteeism.

As Analytic Brokers™ we’re uniquely qualified to assess your financial leakage so you can gain better insight and decision support. Secondly, we’ll provide you with a plan of action to reduce these expenses and improve your financial performance. Unlike traditional brokers, we’ll review the entire cost structure of your healthcare program (not just premiums) to see where we can make the biggest impact.

Don’t wait and let your capital continue to seep off your bottom line! Contact us today

*Source: TCORCalc® - North America's leading authority on risk management program analytics and insurance industry benchmarks.

Measure Your Insurance Program’s ROI

Have you ever considered your insurance program or risk management expenses as a Return on Investment? No? You’re not alone. Simply put, traditional insurance brokerages do not have the capability to quantify the financial impact of a risk management program.

The ROI of your insurance program should be measured by the same level of accuracy and scrutiny that you apply toward assessing your other business initiatives. Isn’t it true that virtually every expense you consider for the coming year must yield a measurable result?

Your insurance program should not be an exception.

Insurance Program ROI

As a Certified Analytic Broker™, we’re uniquely able to quantify the ROI of your current risk management program. We’ll provide an in-depth analysis of your cost structure and provide insight on what you can do in the future to improve your business performance.

As a financial executive, you deserve to fully understand your cost structure and how to move your overhead expenses towards a true ROI. It can be done.

Fill out the contact form and we’ll show you how.

Your Biggest Unchecked Profit Drain

If you are like most organizations, your largest source of unchecked profit drain lies right before your eyes. It’s eroding your efficiencies, capital, productivity and financial stability. It’s huge.

Unfortunately, most firms and their insurance brokers have ignored it for years. Why? Because they had no way to measure it. And even if they attempted to measure it, they had no way to address it. But we do.

Your profit drain is not inside your insurance program or your premium costs. This goes against the message most insurance brokers deliver as they try to sell you insurance for everything. Your profit drain actually sits right inside your business, and it costs you tens, hundreds, or (with larger organizations) millions of dollars.

This Financial Leakage is insidious to your organization. Each time you have an insurance claim of any type, your entire cost structure blows up. No matter the type of claim, you have significant Financial Leakage related to time, people, brand, customers, managers, internal friction, extra procedures, etc.

How much is YOUR unchecked profit drain and Financial Leakage?

As Analytic Brokers™, we utilize data created by TCORCalc®. In reviewing the data obtained from hundreds of CFO’s and risk managers nationwide, here is what we know: Your drain on profits (over and above your insurance cost) is usually an additional 30% to 60%.

Look at your annual budget for insurance costs… now add an additional 30% to 60% to that amount to cover the costs that are being absorbed inside your organization. How does that change your financial position? Can you afford to leave that profit drain inside your financial statement?

Of course not.

You should contact us today for a Financial Leakage Report that will help you establish exactly how much money is draining from your organization. It will be the most important thing you can do to plug the leak and maximize your bottom line.

* Source: TCORCalc® is North America's leading authority on risk management program analytics and insurance industry benchmarks.

Recover Your Wasted Capital

The largest expense inside your risk management and financing program is the Financial Leakage that exists inside your business. These indirect loss costs rob your business of productivity, margins and EBITDA results.

They are there right now, skewing your results towards unprofitability. And your leakage gets worse every time you have a claim (even if it is insured). In fact, if your results mirror the average of firms like yours, you are likely throwing a tremendous amount of margin away.

Most insurance providers won’t tell you this, because they don’t have the ability to measure, forecast or impact your financial leakage. Until now, the exact amount of damage inside your business has been unquantifiable. is huge!

Think about this: How much does every loss cost you? (whether it be a worker’s compensation, automobile or liability claim). Sure the insurance carrier may pay them, but how much do they really cost you in additional expense? Can you remember any losses that became expensive problems for your organization in time, reputation or productivity? That is wasted capital.

Your Budget Is Wrong

As an Analytic Broker™, not only can we pinpoint exactly how much capital your firm is wasting, we can show you how to recapture it. Imagine the impact on your business results!

Can you afford to ignore it?

So, contact us today. We will provide your organization with an in-depth Financial Leakage Report™. Without it, you are probably wasting a great deal of financial resources and your hard-earned capital.

“If you can’t measure it, you can’t improve it..” - Lord Kelvin

Your Budget Is Wrong

If you are like most businesses, you are now working on your financial planning for next year. Of course, a huge part of that is your budget for financial expenses that will drive your profit projections, CapEx spending and hiring decisions.

What if I told you your budget projections for Risk Financing and Risk Management expenses were inaccurate? If your budget was 30% off target (or more)* before you even began the year, wouldn’t you want to know about it?

For example, if your annual property/casualty insurance costs are $375,000 or more, you likely have a six figure number for your unbudgeted expenses.

Unless you have accounted for the Financial Leakage that currently exists inside your business, your budget is skewed. Financial Leakage resides in every single insurance claim you have, from any type of loss (property, vehicles, people, etc.). It’s not about the insurance policies.

Chances are, you have not accounted for these costs. Most insurance brokerages and providers do not have the ability to pinpoint, quantify and help remove these costs. We do.

So, as you finalize your upcoming budget, remember this: Without knowing your projected Financial Leakage, you will be wasting capital and negatively impacting your ability to maximize your bottom line.

“If it cannot be measured, it cannot be improved.” - Lord Kelvin

If you would like to quantify the additional money you need to include in your budget, contact us for a data-driven Financial Leakage Report™. It will mean the difference between a budget based on opinions and one based on facts.

Contact Us to Learn More

* Source: TCORCalc® is North America's leading authority on risk management program analytics and insurance industry benchmarks.

Calculate and Unlock Your CAPEX Funding Now

Whether you call it CAPEX (Capital Expenditures), your budget for equipment purchases, or funding for your business improvements, it’s basically the same thing. You scour your financial statements every year to find money to invest in your buildings, equipment, renovations, IT upgrades, etc.

Normally, you budget for these items. But, in some cases, the financial requirements for funding sneaks up on you through unplanned obsolescence or shifting business conditions. When that happens, you might ask the question: "What extra sources do we have for capital?"

Calculate and Unlock Your CAPEX Funding

The answer lies in front of your eyes, and it has always been there. Yet, for most of your business career, the source and the amount was unknown to you. It really wasn’t your fault. You simply didn’t have the information that real-time analytics can now provide you. The playing field has changed.

Financial Leakage currently exists in your operation, and it’s escaping your financial results on a regular basis. That is a GUARANTEE.

Your Financial Leakage is the result of the extra costs you incur each time you have an insurance loss. Whether it’s people, productivity, brand value, customer dissatisfaction or other items, these costs are significant and consistent. They exist inside of your organization as well as virtually all other businesses. And until now, they have never been known or acted upon.

With our firm’s ability as a Certified Analytic Broker™, we can provide you with a tremendously important business optic. Our analytics-based Financial Leakage Report™ will help you:

  • Pinpoint exactly how much money is flowing from your financial results
  • Show you how to recapture it
  • Demonstrate the impact your leakage is having on your CAPEX, EBITDA and margins

Your business has changed dramatically in the past several years. So has ours. As a Certified Analytic Broker™ we are evolving from simply a provider of insurance products to that of a business solutions organization. We have a solution to help you discover and unlock your CAPEX funds and move you closer to achieving your key financial outcomes.

Contact us today to learn how

The Quickest Way to Improve Your Margins

One of the quickest ways to improve your margins is staring you in the face. It goes unnoticed by many, and yet it’s one of the simplest to execute as you recapture costs and boost your profits.

You have existing Financial Leakage inside your organization that’s going unabated, robbing you every day of margins, EBITDA, productivity and ownership valuation.

This Financial Leakage is the quantifiable and controllable cost that exists within every insurance claim you experience. And it’s tied to things like productivity, management reporting, accelerated depreciation or brand/reputation loss.

In most cases, it’s between 30% and 60% of additional cost on top of your existing risk financing expenses.


So, ask yourself these questions: "If I take our total risk financing expenses and multiply it by the above percentages, how does it impact our margins? What if we could recapture it?"

Financial Leakage Example

It is 100% guaranteed that leakage exists inside your organization, with every insurance claim. If you don’t know exactly how much it’s costing you, you can never achieve your margin efficiency.

As an Analytic Broker™ we can provide you with a confidential Certified Financial Leakage™ Report, showing you exactly what your current leakage is and how deeply it’s impacting your margins.

You really need this important information so that you can plug the leak. We can help you there too.

Of course, you could choose to do nothing. But, without knowing exactly how much this leakage is costing you, you might not be doing everything in your power to improve your business organization.

So, if you would like to really understand your cost structure and how to improve your margins by focusing on your leakage, contact us. Our firm will show you this vitally important business metric and how to improve your margins by reducing it.

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