Conduct your Due Diligence when Buying an Insurance Agency

November 20, 2008

Buying an Insurance Agency

When buyers locate an insurance agency for sale, you should always have a plan before conducting due diligence. It’s important to remember that the seller of the agency has put a lot of blood, sweat and tears into their business. When a pessimistic buyer asks questions and acts suspicious towards a sellers answers, it can kill a deal. Your goal during due diligence is to verify income, expenses, determine the retention of the policies on the books and learn as much as you can about the insurance agency you’re considering acquiring. We’ve written numerous articles about the importance of due diligence and how to prepare for it as a buyer or seller. This may sound biased, but it helps to have an intermediary when buying or selling an insurance agency. An intermediary can request and obtain information that buyers and sellers may be timid to request. Intermediaries can help keep your insurance agency acquistion moving along and make sure everyone is focused on closing the deal.