There are many different reasons why insurance agency owners may choose to sell a successful business, which means there are also an equal number of potential Merger and Acquisition (M&A) strategies. Simply wanting to leave the industry or to focus on other interests is reason enough for some agency owners to decide to sell. Some selling owners may choose to stay on in some capacity to offer the buyer support during the acquisition, while others will prefer not to be involved in the integration process at all. Aging agency owners may be looking to retire. Regardless of age, some sellers may find themselves unable to continue ownership due to health reasons.

Additionally, an agency owner may decide to sell for strategic reasons. For example, there may be potential to increase the operational footprint of the agency. An acquiring company with a larger cash flow and bigger marketing channels will be able to boost market share and expand geographical reach. The acquiring party may give the business a chance to operate under new management with an expanded professional network. Selling an agency can also present the opportunity to introduce new, diversified products, services and policy offerings to more consumers. With more to offer to a wider range of potential clients, an agency can acquire a more diversified customer base, increasing its overall value.

Conversely, the decision to sell an agency may be completely outside of the control of the current owner. A wider economic event can create a need or incentive to sell. Working with an experienced Mergers and Acquisitions advisor can help sellers find the right buyer for their agency. Springtree Group assists both buyers and sellers in the insurance space, offering a complete program of acquisition process development. We know that every owner reaches the decision to sell for very different reasons. STG can help agency owners develop a sales strategy that fits their exit needs.

For owners looking to sell, there are a wide number of deal structure options to aid in achieving various objectives. With Springtree Group’s help, agency owners can find the best structure that satisfies their specific needs and goals, making the sale of their agency a positive experience regardless of their reason for selling.