Experience Helps when Selling an Insurance Agency

January 1, 2009

Selling an Insurance Agency

After you’ve invested years and/or decades into your insurance agency you finally decide to sell. You want to get out and not worry about who shows up and who doesn’t. You want to be rewarded in one lump sum for the years you’ve invested in your insurance agency. There are plenty of buyers in this market. Every day you receive letters and emails from various companies telling you they want to buy your insurance agency. This may seem like a great opportunity but the fact is – they’re in the business of buying and selling businesses and you’re not. Most life long agents will sell an Insurance Agency once. The company(ies) that want to acquire you, buy insurance agencies regularly. The first exposure to selling your business is going to be from someone looking to buy your agency for the least amount of money possible. Sounds like an instant disadvantage – and it is!  Buyers will give you misinformation to benefit themselves throughout the entire transaction if you’re not familiar with the process. How multiples are paid, how to structure, allocation of terms, contract language, carrying notes, unearned commissions, earn outs, escrow, the list goes on and on. It’s best to consult with a firm that specializes in buying and selling insurance brokerages. You also need to include your CPA and Attorney in your transaction. While they won’t be well versed in pricing or insurance details they’ll help you in more ways than I can list in this post. So since you’ve spent years or decades building this agency – don’t go it alone, hire some help and learn from someone with experience. Someone who can help you get the best price, bring pre-screened qualified buyers and assist you through the due diligence process. Selling your insurance agency should be a positive experience for you so contact us and we can help you maximize your return.