We field anywhere from 15-30 calls every week from prospective buyers looking to purchase an insurance agency. We receive 1-2 calls per week from agency owners looking to sell their insurance agency. The difference between buyers and sellers in todays market is easily 30 to 1. In most cases we don’t have to market an agency, we already have a client that’s ready, willing and qualified to purchase it. Sellers have the ability to pick and choose their suitor and the terms at which they’re willing to sell. Of course the terms must be reasonable otherwise you’ll turn off good qualified buyers. The number one reason agencies don’t sell in this market is unreasonable pricing.
The second reason is the inability for a prospective buyer to conduct reasonable due diligence in order to determine value. Many agency accounting processes are simply not a priority and it ends up hurting them when they try to sell or merge their agency.
So, if you’ve considered selling your agency and need a little extra incentive – you now have one. Agencies have been selling for record multiples the past several years and although that trend has cooled a bit in the past year, they’re still selling for a premium.
If you found this article because you want to sell, take the next step by contacting us and letting us help you find qualified buyers. If you don’t know how to price your agency or need help organizing records to prepare a sale, we can help.