Insurance Agency Sales: Selling a Partial Book of Business

While we are proud that Springtree Group has earned a sterling reputation as a mergers and acquisitions firm offering a comprehensive suite of services to insurance agency owners and buyers alike, we want you to know that we also assist our clients in an entirely unique capacity: to wit, buying and selling a partial book of business.

To maximize profitability over time, boost earnings prior to a purchase, or raise funds to change the strategic direction of their agency, many successful owners sell specific selections from among their books. This strategy is sound in any of these scenarios. Such an approach benefits not only the seller, but also buyers who may not have the means to acquire nor time to manage an additional business in its entirety.

Earn Top Dollar for Your Policies 

Startup agencies and smaller businesses will each target policies to buy that have been listed for sale by another independent agency. Due to their understanding of such niche products, these buyers are happy to pay healthy prices.

It’s important to understand that such robust offers are almost never achieved by going it alone.

Reasons to sell a selection of your books:

  1. Your Target Market Has Changed

Often, we as business owners cannot fully understand whether a market will suit us until we have dipped our toes into the water. If you’ve decided that a market you’ve tested isn’t a good fit, no problem! STG will assist you in finding the best buyer for your acquired partial book(s).

Overall, it’s best to have the ability to focus on the market you will be targeting rather than spreading your efforts thin across disparate sectors.

  1. Disappointing Profit Margins

As a savvy business owner, you understand that revenue minimums must be respected. If you have books that have under-performed quarter after quarter, we do suggest letting them go. It’s unlikely that the books are the best fit for your company. They will be a better fit under another agency’s wing.

  1. Reshaping a Recent Acquisition

Have you recently acquired a successful agency, then realized that one portion of the business will not thrive under your planned business model? This exact situation happens fairly regularly and can be remedied easily with our proprietary strategies to sell only the book(s) or division(s) you wish.

  1. Build It Up; Sell it Off

As we’ve described it above, you may now believe that selling a portion of an agency’s books is always a remedial strategy. Not so! In fact, we regularly work with clients who build up certain books of business specifically to sell them. This is a fully viable method for continually reinvesting capital into one’s agency without having to expand operations.

You, too, can avoid devoting your time and profit margin to supporting another branch or additional employees—yet still build up your business gradually—via this same tactic. 

We Are Here to Help

If you recognize your own agency’s position in our aforementioned scenarios, we encourage you to contact us today. Springtree Group is uniquely positioned to locate both buyers and sellers of partial books or divisions of independent insurance agencies. We look forward to speaking with you about your options.