Many insurance agency owners believe that since they own a business, they understand the complexities of how to sell an insurance agency. When I hear this, I always ask the question; you’ve owned and lived in your home for 20 years, why do you hire a Realtor? The reality is, selling a business is more complicated than selling a house. When selling a home if a buyer signs an agreement to buy, they’re committed to buying the home unless their 17 day loan contingency falls through. When selling an insurance agency, there is no such commitment and a buyer can walk away the day before closing and you can’t do anything about it. In addition to this potential pitfall, most agency buyers are experienced and know a lot more than they’re willing to share with you. Whether it’s how to allocate the assets in your purchase agreement for tax purposes, the value, or financing, the seller of the agency is at a disadvantage. Most sellers will sell an insurance agency once, where most buyers have purchased more than one. The experience of going through a closing is priceless for the buyer so sellers should have someone on their team that can provide guidance throughout the entire process.
When you hire an intermediary to represent you, we can ask the tough questions to buyers. We can flush out the people that don’t have the resources to close a deal and overcome objections a buyer may give you on the potential selling price of your insurance agency. Another benefit to hiring representation is keeping it confidential and not having to have to deal with buyers calling or stopping by your agency. This usually scares employees and will distract you from running your business.
So, if you’ve considered selling your insurance in the next 6-12 months, please give us a call. We can help you prepare the agency so when it’s time to show to potential buyers you can maximize the value of what you’ve worked so hard to build.
The best part about hiring representation is that you don’t have to pay anything until the agency is sold. Same as when you sell your home.