Mistakes to Avoid When Selling Your Insurance Agency Quickly

Selling your insurance agency is a complicated, multi-step process involving a number of participants. This is true even if you follow the most conservative expert advice and plan for your eventual sale five years in advance of your exit. So, what happens when you decide to sell your agency with far less lead time? Let’s discuss four mistakes to avoid when selling your insurance agency quickly.

  1. Neglecting Preparation

Even though you’re eager to sell your agency, you may miss out on significant capital by skipping key preparation steps.

  • Your corporation type may need to be altered to benefit your tax status.
  • Your client and financial accounts should be in impeccable order.
  • You will need access to multiple years of financial and carrier production reports.
  • Your employee workflow protocols should be clear and transferable.


  1. Being an Active Participant (Without Guidance)

This may be your first time selling a business. Even if you have sold an agency in the past, you won’t know this buyer’s process for working through deals. Some bad faith bidders could try to string you on for months beyond the agreed-upon dates, which is the opposite of what you need. When you work with Springtree Group, you can be an active participant in the transition event with an experienced M&A team by your side.


  1. Ignoring Potential Liability

It’s imperative that you understand how selling your agency will affect your liability. Contrary to common understanding, transferring ownership does not always absolve you of responsibility.

For example, in some cases, an unidentified Errors and Omissions Claim could come back on you several months down the line, and you could be forced to cover the penalties. Springtree Group will ensure that your assets remain protected, your books are in order, and that you only sell with a clearly defined agreement.


  1. Working on Your Sale Alone

Being a highly experienced insurance agency owner does not make one an expert on mergers and acquisitions. If you underestimate the skill and labor involved in coordinating a profitable sale and attempt to go it alone, you may be wasting valuable time and risk your financial outcome.

Instead, work with a specialty intermediary firm like Springtree Group. Our mergers and acquisitions team has a narrow focus on agencies whose annual commission revenues are under $5 million, with a lower floor of $100,000. We will connect you with qualified, financeable buyers who are motivated to act in good faith at each stage of the transaction while working alongside you to ensure your interests are protected.


If you’re planning to sell your agency anytime between 2022 and 2027, now is the time to prepare. Contact Springtree Group today to discuss your plans, your agency, and the type of buyer you are looking for. We’re here to make sure you’re comfortable with the process and pleased with your proceeds.