Insurance Agency Acquisition Checklist

Mergers and acquisitions amongst insurance agencies continue to grow. That’s great news whether you’re buying or selling. However, the deal of the decade isn’t worth the paper it’s written on if it’s poorly executed. Business ventures such as these require experienced professionals to lead the way from conception to closing. Springtree Group is the firm to consult for all of your questions relating to the sale or purchase of an insurance agency. We are uniquely qualified to help you structure a successful business transfer. Throughout your transaction, we will walk you through the process so that no crucial steps are missed. Our insurance agency acquisition checklist is a jumping off point that will help us ensure that due diligence is accomplished.

As you’ll see below, there is so much to think about as you move toward an agency sale or acquisition. While we want you to be aware of everything involved, rest assured that STG has a proven process that will get you through every step of your transaction without any missteps.


Agency Preparation

  • Identify clients, gather documents from important agency meetings and prepare an asset list.
  • Compile auditor reports, annual financial statements and a summary of all current insurance contracts.
  • Gather articles of incorporation, bylaws, shareholder agreements, certificates of good standing and a list of intellectual property.
  • Provide a complete schedule of insurance covering the agency.
  • Prepare a list of employees, including any employee contracts, and the employee handbook.

The deal of the decade isn’t worth the paper it’s written on if it’s poorly executed.

Other Factors to Consider

  • Which assets are included in the valuation? What is absolutely not included? (Ex: book of business, furniture, computers, licenses, contact information)
  • In addition to the overall sale/purchase amount, think about how and when it will be paid and consequences/remedies for late or non-payment. The agreement should include an indemnity provision that protects all parties.
  • To what extent will the buyer need (and the seller be willing to extend) assistance with the asset or business post-closing? Both should be willing to reasonably cooperate to close the deal.
  • To make the transition as painless as possible, consider the terms for: redirected mail, new business referrals, and other smaller but equally important details. How will employees, potential customers and long-term clients be notified?
  • Consider all stakeholders throughout the entire process; it’s important to keep everyone informed.


As you can see, there are many details involved in buying or selling an insurance agency that simply should not be overlooked. Skipping necessary steps can mean money lost for either the buyer or the seller. Whether you’re seeking valuation of your agency with a mind to sell, investigating a potential asset to purchase, or looking to invest in a profitable insurance business, you need a team with our unique perspective working for you. The executives at Springtree Group have built, managed and sold our own companies; we are a privately-owned company of entrepreneurs helping entrepreneurs succeed. To springboard off the acquisition list above into a successful transaction, contact us today.