If you’ve decided to wait to sell your insurance agency due to the uncertainty of the economic landscape, there are multiple things you can do in the interim. Think of this time as bonus preparation time and enact these improvements as rapidly as possible. The sooner you make these changes, the more robust your agency’s books will be when potential buyers examine them down the line.

We’ve compiled our top recommendations for any independent insurance agency owner who plans to wait out the pandemic before listing their agency for sale.

  1. Pay Close Attention to the Insurance Landscape

This is not the time to become less vigilant. Rather, take this time to dig into the numbers, both forecasted and realized. Make your own predictions about your business at least once per quarter, and work hard to correct projected shortfalls.

Striving to maintain a dynamic business model that responds rapidly to market shifts will give you a greater likelihood of emerging from the current economic crisis related to the 2020 pandemic successfully. This is one of the most important steps you can take to position your agency for an advantageous sale in the future.

  1. Prepare Your Statements

When you work with Springtree Group to list your agency for sale, our financially vetted buyers are going to want to examine your financial statements in detail to ensure that your agency is a wise investment. In order to make this process simpler for all involved, it would be prudent of you to take this extra time to ensure that your financials are organized, accurate, and easy for an outsider to navigate. Consider how your business will appear to an objective set of eyes rather than through your own and prepare accordingly.

If you would like further insight into this process, reach out to STG. Whether you are already listed with us, or are preparing for a 2021 sale, we will work with you to ensure your agency is poised to earn a sale price that will provide adequate funds for your life’s next step.

  1. Prepare to Interact with Potential Buyers

Be ready to answer any questions potential buyers may ask. Just as you’re spending this time getting your own “house” in order, savvy buyers are writing up a lists of queries they’ll have for you. The better informed you are about your own books and your clients, the better your chances are of snagging the right buyer. Make sure you have a solid grasp of your financials, the ins and outs of your marketing plan, and how your business responded to the pressures of the pandemic.

The takeaway here is that this is not the time to enter a holding pattern. Instead, work to ensure that your agency can stand up to the close scrutiny that will occur when you do feel ready to sell your insurance agency.

Springtree Group is proud to represent clients throughout North America, Europe, the Bahamas, and around the globe. If you would like advice targeted to your agency’s unique situation, contact us today.