We’ve written on numerous occasions how unbalanced the ratio is of insurance agency buyers compared sellers. Other than Insurance Agency Consulting, the number one reason clients contact us is to BUY an Insurance Agency. Since there are so few sellers in the marketplace this may be the best time to sell your insurance agency.
What most Insurance Agency Owners don’t realize is there are many buyers with experience, markets, cash and existing agencies that want to acquire additional agencies and books of business. We literally receive 20+ buyer calls for every one seller. Many Insurance Agency Owners look at your book of business as an additional revenue stream to grow their existing agency. In these economic times, many agencies aren’t reaching their growth goals so they’re buying agencies and books of business to reach their revenue and profit goals.
Once you make the decision to sell, it becomes much easier to complete a transaction. Even though I mentioned earlier that there are 20+ buyers to every seller, finding a qualified match is extremely challenging. Wouldn’t it be great if you found a buyer with the same carriers you write, the same management system you use and funding? You want to find a buyer with an agency that resembles yours because they’ll see the true value of your agency. If you get caught up with the wrong buyer, you can waste months of time and never complete the transaction.
This site is loaded with information about selling, buying and operating Insurance Brokerages. We can also perform a Valuation for your agency to give you a better idea what the agency is worth. Valuations can be completed within 1-2 weeks depending on your size and will help you decide whether or not this is the right time for you to sell.
The fact that agencies are in demand won’t last forever.If you’re selling, or are considering selling your independent agency in the next 6 months to a year, contact us.