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A few sellers we’ve spoken to recently say they want to wait until the economy improves before selling their insurance agency. Most buyers looking to buy agencies today are having a hard time finding quality books of business to buy which is why now is a great time to sell.
If you own an agency with a heavy carrier concentration in Mercury, Safeco, Travelers, Hartford, Allied or other preferred market and are considering selling in the next year, you can fetch top dollar for your agency. Even though the economy is sour and banks aren’t lending money, there’s a lot of money on the sidelines from buyers looking to grow
There may be no industry in this country experiencing consolidation at a faster pace than the insurance agency business. Since 1990, the total number of independent insurance agencies has shrunk by more than 20%, but smaller agencies have disappeared at nearly double that rate. So where have all the agencies gone and what does it mean for today’s agency owner?
Insurance agency owners who are considering selling their agency, are obviously very curious about the price they can sell their agency for. It’s the single most asked question of Acquisition Brokers like Ganis Consulting, “How much can I make if I sell my agency?”
Most agency owners will sell an insurance agency once in their lifetime. Many insurance agency buyers have purchased more than one and have more experience with the process. Because of this experience, buyers have an advantage when it comes to negotiating the sale of your Personal, Commercial, Health or other Insurance Brokerage.
Property and Casualty rates are down and Insurance Agency Buyers see that as an opportunity. Buyers believe that if they can acquire a $250,000 commercial insurance book and keep 80-90% of it intact, when rates go back up that same book should generate closer to $300,000.
Many Insurance Brokers that are considering the sale of their agency have a variety of factors to consider. One of them is that there is no such thing as staying the same.
Most of the calls from prospective insurance agency sellers start with, “What are agencies selling for these days?” or “What kind of multiple can I expect if I sell my agency?”
When listing an insurance agency for sale, you’ll be approached by buyers asking for a variety of information. One of the items they’ll ask for is an income and expense statement and/or commission statements for the past 3-5 years. When you show this information to a buyer is up to you, but at some point, they’ll require these documents in
One of the toughest challenges we face on a daily basis is the ability to verify income of an insurance agency for sale. Insurance Agency Owners have a good idea how much each carrier pays them monthly but lack the paper trail buyers need. We have various posts on this very topic and it’s important for sellers to organize their