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.
When the market hardens and the economy improves, we’ll have an abundance of sellers entering the market. This is a negative for sellers of insurance agencies because the competition will be much greater at that point. If you were to list your agency for sale today, you’d have several buyers competing for your book. If you wait several years, you’ll be competing with other sellers and demand will be much lower.
Similar to the housing market, when there are less homes for sale, values increase. When there are an abundance of homes for sale, prices plummet as we’re seeing in the current housing environment.
Take into account the fact that capital gains taxes are likely to increase in a year sellers have tons of incentive to make a move sooner rather than later.
If you’re considering selling your agency in the next year, please contact us for a free consultation. We can discuss your particular situation and give you input as to whether or not your a candidate to sell now.