If you’re thinking about selling your independent insurance agency, 2018 could be a great time to make it happen. Several economic factors have come together to create a “seller’s market,” but there’s no telling how long this window of opportunity…
The past 12 months saw robust mergers and acquisitions activity for insurance agencies. Across the country, agency owners in their 60s and 70s who are transitioning into retirement provided opportunities for savvy buyers to acquire existing agencies with a strong…
Without fail, the phones in our office ring seemingly non-stop during the last quarter of the year, as insurance agency owners call to ask about selling their agency before year-end. Arranging a successful sale—and ensuring that you get the full…
When it comes to leveraging new technologies in business, many insurance agency owners are still in the Industrial Age. Fewer than half of all independent insurance agents use e-newsletters, text messages, social networks or instant messaging, according to last year’s Insurance Digital Transformation Survey, which polled more than 4,300 independent insurance agents nationwide. The majority also admitted that their business lacked key technology tools, like client portals and claims download. Given that digital tools are practically ingrained in the DNA of Millennial clients and commonly used by Gen Xers, agency owners and brokers who omit these options could not only fall behind the competition, but flat out miss reaching a significant segment of the marketplace.
As an insurance agency owner, you aspire to someday reap the fruits of your labors from building your book of business. That may mean living off the earnings from the sale of your agency when you retire, or using the…
If you are planning to sell your insurance agency in a few years, you could make a greater profit by moving up your timeline. That’s because we’re in a perfect storm for insurance agency owners, with several factors working in their favor for a transfer event.
When it comes time to sell your insurance agency, you want to get top dollar for the business. Whether a prospective buyer agrees with you about what the agency is worth is a different matter. The current practice for agency valuations is more complicated than just calculating a multiple for retained commissions. Discover what prospective buyers are looking for, and how to drive significant value for the business in anticipation of a sale.
If you dream of running your own insurance agency, you can follow various paths to make the vision a reality. You could start from scratch and build your client base, purchase an established agency, or purchase a book of business. The latter option often provides an easy point of entry for brokers who are just starting out, as well as a cost-effective option for those who want to expand an existing agency quickly.
A good business exit strategy can take years to come together, because businesses are the least liquid investment you can make. Much of the value of your insurance agency resides in intangible elements, like your relationships with vendors and clients, your ability to manage employees, your attention to detail, and your vision for the future. If you are considering selling your insurance agency, you need a great exit strategy to ensure that you get the full value of your business.
Demand from individuals wanting to buy an insurance agency has been strong for the past several years, which is great news for sellers. The flip side is that the seller’s market can make it hard for buyers, who are facing more competition and need to be savvy to get a good value. If you are considering an insurance agency acquisition, here are a few factors that can help you distinguish a great deal from a bad egg.