Should I use an Intermediary when Selling My Insurance Agency?

By looking at our site you can guess our answer to this question is a definite yes. When you sell your business without an intermediary you’re not using every tool available. If you have a buyer with certain objections, they’ll never tell you their concerns and will most likely walk from the deal. When you have a 3rd party communicating with potential buyers, they’ll tell us all of their objections which we can overcome. Below are just a few of the benefits to using an intermediary when selling your agency.
  • Weed out unqualified buyers and bring you people with money, insurance appointments, licensing and experience.
  • Help determine the value of your agency so it’s priced competitively and doesn’t become stale by sitting on the market too long.
  • Intermediaries have completed numerous transactions and can help you prepare, price and market your agency so it’s as attractive as possible.
  • Confidentiality! Last thing you want to happen is your employees to learn you’re selling then have them quit out of fear they’re losing their job.
  • Confidentiality! Yes, I know we mentioned this already but you don’t want carriers, marketing reps, vendors, competitors or employees to know you’re selling. We field calls, and give minimal information until the potential buyer is prequalified.
  • We can sell your business for more than you can. By working with 100’s of buyers, we’ll match a buyer with your agency based on their specific needs.
  • We help you negotiate the letter of intent, pricing and other terms of your agreement.
  • An Intermediary can give invaluable information regarding Purchase Agreements and non-compete agreements. Although your Attorney and CPA will prepare and approve these agreements, your attorney doesn’t have 20 years insurance experience and has most likely never sold an insurance agency.
  • Our firm specializes in selling insurance agencies. As ex-agency owners we understand the need to maximize your return when selling your insurance agency.
Using an intermediary allows you to continue running your agency so you can earn as much money as possible during the sales process. This process can be as quick as 60 days and can take up to 8-12 months to complete. Let someone else interview buyers, keep track of confidentiality agreements and show the business so you can run your agency and maintain current production levels. We have several references if you’d like to talk to them about our services. Please contact us if you’re interested in selling your insurance agency.