In spite of the slow down in the economy there are still an abundance of buyers looking to purchase insurance agencies and brokerages. Many sellers are reluctant to list their insurance agency for sale because they’re not writing the business they were the past 3 years and think they can get more by riding out the slow down.
The fact is, Insurance Agency values aren’t what they were years ago. When Banks started purchasing agencies they paid ridiculous multiples for businesses. Brooke Insurance in California paid premium multiples for non-standard agencies and raised expectations throughout the industry.
Another big factor in the over valuation of Insurance Agencies was lending. Money was easy and cheap so buyers could leverage their acquisitions with an interest only loan and even when they overpaid could still turn a profit.
In spite of the soft market, poor economy, tighter lending standards and everything else going on in this world, insurance agency buyers out number sellers by at least 20 to 1. The challenge in selling an insurance brokerage is finding a buyer that is looking for your specific type of agency.
In order to successfully sell an insurance agency in times like this you need a plan and you need to be prepared for prospective suitors. You have to be willing to give and take in order to put a deal together. We can help you prepare and sell your insurance agency. We’ve completed dozens of insurance agency acquisitions including 7 this year.
Please contact us if you’d like to learn how we can help you sell your insurance agency.
