Despite the less-than-stellar financial status currently being reported across other private sectors, insurance mergers and acquisitions remains one of the few areas of the economy still reporting reassuring figures. Because insurance remains legally required for nearly all aspects of life, we may reasonably conclude that this trend will continue unabated.
Given the financial stability many private insurance agency owners experience, it is clear that there are motivations beyond money that would cause them to decide to sell. Today, we’ll discuss a few of the most common reasons agency owners put their businesses on the market.
If you are an agency owner and recognize your own situation as you read this post, you may find yourself thinking, “I want to sell my insurance agency this year!” Sound like you? We encourage you to contact us right away. Springtree Group is connected with eager, fully-funded buyers who would like to add your agency to their portfolios.
Buyers, as you look for healthy agencies to acquire, the following reasons for selling an insurance agency are all good indicators that the owner’s motivations for selling are not strictly financial. Make a note of agencies for sale that fit into any of the categories below, since they’ll be likely to continue thriving under your ownership as well.
- RETIREMENT
Most commonly, the owners of a successful agency will choose to sell because they are eager to retire. Having relied on their insurance sales to prepare a robust retirement, these owners will likely want to hear how a buyer plans to ensure the business’s continued success.
- FAMILY OBLIGATION
While they themselves may not be prepared to retire, agency owners may sell in order to be able to take care of an aging parent or loved one.
- CHANGE OF INTERESTS
When an owner loses interest in their business, it’s in their best interest to sell while the agency is doing well. Over time, a disengaged owner can drag an agency down with them; by working with STG, you’ll have assistance analyzing whether the agency you’re looking at is thriving or in need of a total turnaround.
- RELOCATION
Independent insurance agencies are often rooted to the locations in which they were built. Accordingly, an owner who wishes to move to another state or even another town may find that it’s to their benefit to sell rather than attempt to uproot and relocate a successful network.
- CRAVING MOBILITY
After having been rooted in one place for an extensive period of time, some agency owners crave the ability to travel as they please. This is an indicator that their business ventures have allowed them to set aside ample funds for travel; take note.
Whether you’re planning to sell your own business this year, or are seeking to expand your holdings, Springtree Group is ready to assist. Our in-house research team works continually with our extensive network of insurance insiders to ensure that our buyers are among the very first to learn about agencies listed for sale.
Our financing department will be indispensable as you place an offer on an agency. Because inadequate financing is the most common reason a deal is rejected, it’s vital that you work with us to help you place aggressive, successful offers.
Wherever you are located, we are able to offer our expertise, robust financial backing and extensive network to assist you in your purchase or sale of an independent insurance agency.
Contact us today; you’ll only locate the best deals if you’re actively participating in the conversation when they arrive on the market.
