After a long and successful career, many owners of independent insurance agencies decide they want to sell their business. Changing life circumstances like retirement or health issues and shifts in business interests can affect an owner’s desire to sell. But timing is everything when it comes to selling a business and it takes time to transition out of agency ownership. Some owners find that by the time they want to sell, they have waited too long.
Signs that you have waited too long to sell your insurance agency include declining revenue and profits, the loss of a major customer or key employees, the introduction of a new major competitor, declining personal health problems, or even an ailing economy. Any of these problems can become major obstacles to selling your business. When you try to sell your agency under less than ideal conditions, you typically don’t get the best price for the agency you worked so hard to develop. When business is good, you can show potential buyers the full strength of your agency—this is the time to sell.
The biggest mistake a business owner can make is assuming the good times will last indefinitely. After years of success, some business owners can feel as though their success will never end. You may be turning a great profit now, but even the most robust agency is not immune to sudden changes in the economic climate. The American economy is cyclical and ever changing, with a recession happening on average every 5 years. With our last recession occurring nearly 10 years ago and increasing turmoil in the stock market, we are overdue for an economic downswing.
So what is the take away from this? Don’t wait! You don’t want to be caught trying to sell your agency in the middle of a recession. If you know you want retire or change your career path in the next few years, now is the best time to sell. Don’t wait for your health or the economy to decline before you get out. Right now, sale prices and demand for insurance agencies is at a record level high. Get out and sell your business while banks are still lending money for acquisitions. Take the opportunity to sell your business at the height of its success for its highest value.
It is not too late to sell your insurance agency and Springtree Group can help. Our team has decades of experience assisting insurance agency owners with selling their agencies. Now is the perfect time to sell your insurance agency. Don’t end up with regrets in a few years – for your no obligation consultation, email us at sam@springtreegroup.com today.
