Is buying an insurance agency a good idea during a pandemic?

During any period of economic adversity, there have been investors who have made thoughtful and well-prepared financial decisions that have allowed them to emerge from the chaos with increased personal wealth. While the current COVID-19 pandemic is unprecedented and has had a tremendous economic impact on many industries, healthy investment opportunities still exist within the independent insurance agency space.

Naturally, the difficulty lies in minimizing your risks by making a portfolio-enhancing purchase rather than mistakenly acquiring dead weight. By choosing Springtree Group as your business intermediary, you’ll have a team with years of experience in the insurance industry working with you to locate the most advantageous investment opportunities.

Right now, patience will be key. Acquiring an insurance agency takes time under the best of circumstances, and the pandemic means that each step in the process may take longer than usual. The good news is that insurance is a service that is needed regardless of any changes in the economy, so purchasing an agency now is an ideal way to increase your holdings.

When looking for an insurance agency to acquire, it’s vital that you have a full picture of the agency’s performance both before and during the pandemic. Springtree Group’s analysts focus on an agency’s success over the past three years.

Additionally, when we evaluate agencies that have been holding their own since March (when quarantine first began in the US), we recognize that they may have been even more successful had circumstances been favorable. That is why our recommendations will account for their performance in the past 12 months as well as how potentially seamless the transition from current to future owner will be.

The fact remains: well-funded buyers will continue to have the power to scoop up the most successful insurance agencies. Because so many lenders won’t loan capital to those without hard assets to lien against, finding financing can be a challenge. When you work with Springtree Group, you’ll have access to our lending product portfolio that will give you unique and specialized loan packages to choose from.

The process of buying a business involves finding a delicate balance of placing an appropriate offer quickly with doing your due diligence. Failure to properly vet an agency before making a purchase can lead to buyer’s remorse later. While there is a lot to consider throughout the process, Springtree Group will walk you through every step to ensure that nothing is missed.

If you are interested in purchasing an independent insurance agency in the next 12 – 18 months, now is the time to become one of Springtree Group’s Registered Buyers. Without proper planning, your purchase has the potential to sink your personal finances rather than providing the boost you’re hoping for.

Springtree Group serves clients in the United States, Canada, Europe, the Bahamas, and beyond. We have been working remotely with clients for many years, and are thus able to guarantee uninterrupted service despite the current travel restrictions. Contact us, and we’ll position your portfolio to thrive.