Five Signs It’s Time to Sell Your Independent Insurance Agency

Most small business owners consider selling their ventures at least twice in their first decade of operation, and challenging fields like insurance are no exception to the rule. If you’re trying to determine whether this is the right time to sell, consider whether any of the following top Five Signs It’s Time to Sell Your Independent Insurance Agency apply to you.

1. Business has Been Good

There’s a common misconception that one shouldn’t sell a small business unless it’s in financial decline. The truth is, astute buyers will do their due diligence to avoid purchasing a business that shows no signs of profitability.

If your independent insurance agency has demonstrated positive upward trends in its financials, it’s more likely to be sold for a price you’ll find motivating.

2. You Need Capital to Pay Off Personal Debts

Success in business is not always linked to success in personal finance. Instead, due to the unique challenges independent business owners face, they may have to compromise their personal financial wellbeing in order to give their business every opportunity to succeed.

If you need capital to pay off your mortgage, student loans, or other personal debt(s), you may consider selling your independent insurance business. When your liabilities are manageable again, you will be able to re-start your entrepreneurship—this time with less stress.

3. Selling is Your Ideal Exit Strategy

The majority of agency owners do plan to sell eventually. These days, it’s uncommon for a family member to take over when the original owner retires, and without the ability to plan or save for retirement, selling is usually the best option.

While you may have an ideal exit date already in mind, it’s never too early to begin the process. The process of selling an independent insurance agency usually takes anywhere from 9 to 12 months in total.

Having an updated, actionable plan in place will enable you to be able to begin immediately when the time is right to sell.

4. The Market Has Swung in Your Favor

Analyzing the influence of supply and demand will prove crucial in properly timing your independent insurance agency transition event. When, as now, there are fewer available agencies than there are motivated buyers, the seller has the advantage at the negotiating table.

Keep an eye on relevant trends and act quickly when the balance of the market trends to your benefit.

5. It’s Time to Reduce Your Risk Exposure

Before a business has a clear chance of succeeding, independent owners are often confident in taking risks. At this stage of development, their companies are worth nearly nothing, they are likely to be younger, and they may be desperate to take a swing at any opportunity, no matter how slight the promise of reward.

Over time, as the value of the company increases and the stakes are raised, owners are less likely to take risks with strategies and situations that pose financial risk. If you’ve found yourself reluctant to innovate or assume any new risks, it might be time to consider whether it may be time to reduce your risk exposure by selling your agency.

When you’ve analyzed your situation and decided you’re ready to sell your agency, the experts at Springtree Group can help you plan and execute a strategic sale. STG facilitates an entirely smooth transition by tending to each aspect of ownership transfer. Let us connect you with a confidential potential buyer match, assist with the arrangement of financing options, and ensure that you receive the maximum monetary boost from the sale.

If you are considering selling your insurance agency and want to find out whether the market is ripe for a successful sale, message us online or email us directly at: