Selling your Insurance Agency is not as difficult as you think

October 12, 2012

Selling an Insurance Agency

Insurance Agencies for sale are a hot commodity these days because most agents are having a difficult time growing organically. In most cases, sellers of insurance agencies have no experience whereas most buyers do. This puts the seller at a huge disadvantage and will cost you money, increase tax liabilities and a laundry list of other negatives. The truth is that as of today, sellers have a huge advantage over buyers because there isn’t a whole lot for sale. Quality, preferred books of business or fully operational agencies are in high demand and can fetch top dollar in this market assuming the fundamentals are in place. Below are just a few considerations when selling an insurance agency:
  • Are the books and accounting in order?
  • Is there back-up documentation for the P&L so a buyer can complete due diligence in a reasonable amount of time?
  • Do you understand how to value your agency?
  • Are you really a seller or a tire kicker willing to sell “if the price is right”
  • Should you hire representation? You’d never sell a house without a Realtor and there are comps, do it yourself kits and endless tools to sell a home. Businesses are different from a valuation standpoint so representation is essential.
  • Have you spoken to a tax professional to determine tax liabilities based on your business structure? (S-Corp, C-Corp, LLC, etc)
  • Do you want to continue working in the agency or walk away?
  • Do you have any key employees that will stay on after the sale?
  • Are there any Producers in the agency that have ownership in their book?
These bullet points are literally the tip of the iceberg when considering selling your insurance agency. GanisCo has the resources and expertise to help you maximize the value of your agency and we have buyers in the wings that are flexible to ensure terms are fair and equitable for both parties. Contact us today to learn more about how we can help you prepare and sell your agency confidentially.