“What is my insurance agency worth”? is the number one question we field from owners. The best way it’s ever been explained to me is “insurance agencies are like snowflakes, no two are alike”. This statement hits the nail on the head because every agency has different types of value. In our initial interview with agency sellers we ask key questions to determine the value of your agency. When you’re selling insurance, you look for the buyers hot button and close the sale based on their particular needs or “hot buttons”.

The same applies when selling your insurance agency. You need to be matched with a buyer that has a need for something your agency contains. You can crunch numbers on your revenue, EBIDTA, Buyer’s ROI and several other equations but there’s extensive research involved in determining your agency’s real value.

We take dozens of factors into consideration when determining what your agency is worth. Items include profit past 3 years, tenure of staff (if you have staff), markets written, loss ratios with key carriers, commission percentages, location, lease terms and years in business are just a few of them.

Marketing your agency to the general public is difficult as well. What if your employees see the ad, marketing reps, competitors? It’s best to leave that to someone else so they can separate the buyers from the liars and introduce you (confidentially) to qualified buyers. By delegating this to a firm like ours, it allows you to continue running your agency.

Once we determine a price that’s competitive in the current market, we review it together so you can decide whether or not you’re prepared to sell. The best part of this entire process is it’s free! So, if you’ve considered selling your insurance agency, give us a call or email us so we can talk.

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