Be Prepared when Selling your Insurance Agency or Book of Business

Insurance Agency Sellers might encounter 1-2 qualified buyers after having an agency on the market for 2-3 months. You’ll talk to 50 interested buyers, but the people that can actually write a check are few and far between. When you sell your agency, the number one priority is preparation. The first impression a prospective buyer gets from your agency is you. The second impression is your accounting, bookkeeping and operational methods. Statistics show that 1 out of every 5 businesses listed for sale, never sell. The number one reason is pricing (most business owners see more value in their business than anyone else and usually list with unrealistic expectations), the second reason is they weren’t prepared when they put the word out they were for sale.

You’ll meet your 1-2 “Real” buyers in the first few months but if your agency isn’t prepared you’ll lose them. Every buyer wants to conduct due diligence and your lack of preparation can make their attempt strenuous. Then after 3 months of spinning your wheels, you’ll get organized but the agency has been for sale for 3-4 months and buyers will think something is wrong with it, so it becomes stale.

The point we’re trying to make is if you’re selling your insurance agency you need to be prepared. If for some reason you’re overpriced or your agency isn’t in order – you’ll never sell and are wasting valuable time by showing the business. You’re better off investing energy in selling insurance or implementing procedures to prepare your agency for sale.

Another option is to hire a Consulting Firm that specializes in selling insurance agencies. We can walk you through the entire process, put profiles together, gather data about the agency and get it in “show” condition. This way when our 1-2 “real” buyers come along, we’ll be ready to pounce and get the most out of your agency as possible.

The best part about our program is we don’t charge ANY fees unless your agency sells. You can make money running your agency while someone else is weeding through buyers and answering calls and emails on your behalf. You can communicate with one person instead of 10.

Leave A Comment

You must be logged in to post a comment.