There are Many Steps to Buying or Selling an Insurance Agency

February 3, 2009

Buying an Insurance Agency

Locating an insurance agency for sale can create more challenges than buyers and sellers realize. Once you locate an insurance agency for sale, what are the next steps? Sign confidentiality agreements, learn as much as you can about the agency, interview the seller of the agency, visit the location, request documentation about the agency, submit and negotiate an offer, request due diligence material, conduct due diligence,  negotiate and prepare a purchase agreement, locate financing, and finally close the deal. It’s important to remember that the seller of the agency has invested years in their business and can become defensive depending on how you inquire about the agency.  When a pessimistic buyer asks questions or acts suspicious towards seller’s responses, it will hurt your chances of buying the agency. Anyone shopping Insurance Agencies for sale understands how difficult it is to locate quality agencies. The last thing you want to do when locating a viable candidate is offend the seller and ruin your chances of buying the agency. It doesn’t matter how much money you’re willing to spend; offend the seller and you’re chances are close to zero. Hiring an intermediary when buying or selling an insurance agency is an enormous benefit. An intermediary can request and obtain information from buyers and sellers without offending either party. Intermediaries can help keep your insurance agency acquisition moving along and ensure everyone is focused on closing the deal. We can’t tell you how many times we’ve heard about deals going “silent” because nobody was following up to keep the transaction on track. Most buyers have businesses to run and all sellers have to run the day to day operations of their agency. The intermediary can keep the sale on track and if there’s a concern from either side, they won’t be afraid to tell the intermediary exactly what their concerns are. On the other hand, if one of you sense discomfort with something you observe or suspect, you may never explore the problem and walk from the deal. Whether you’re buying an insurance agency, or selling an insurance agency, contact us to learn how our services can help make your transaction as smooth as possible. We sell an insurance agency every month and have the experience to help you successfully buy or sell.<–>