In the private insurance mergers and acquisition market, some sellers elect not to work with an advisor. This decision, made at a crucial moment in the financial trajectory of the seller, is almost guaranteed to leave them comparatively poorer. There are three key reasons that you should absolutely partner with an advisor when selling an insurance agency. To wit:

1. You will Receive Guidance at Each Stage

Unless you have sold multiple private insurance agencies before your current business, you cannot expect to be prepared for the intricacies of operating in the M&A space.

Consider: would you, as an insurance professional, advise your client to speak directly to a carrier to obtain coverage for their business or personal needs? Absolutely not. You understand that such an approach would put your client at a great disadvantage.

You have the experience and education to understand how underwriting works. You know how the carrier will crunch the numbers to assess their risk, and you are prepared to negotiate on your client’s behalf.

This is comparable to how Springtree Group will assist you in selling your agency. We will provide you with an agency valuation opinion followed by an assessment of what type of buyer would be the best fit for your business – this ensures that the business you spent years building will not fall into unprepared or careless hands.

2. We Connect Sellers with Fundable, Serious Buyers

By working with Springtree Group, you will only be connected with buyers who are motivated and have the financial backing required to bring a robust offer to the table. We assist buyers by guiding them to successful businesses like your own, but by first vetting their financial situation, we are likewise able to secure sellers access to ideal buyers.

Furthermore, Springtree Group will take a close look at your business’s operational style and niche within your community. We safeguard that the buyers we recommend to you will be a great fit in these regards. Your business and your employees will continue to thrive in your absence.

3. A Skilled Advisor Adds Value to Your Bottom Line

Consider this: there are predatory buyers who avoid placing offers on an agency once they learn that the seller is represented by an experienced advisor like Springtree Group. They know that an advisor like STG will not accept an offer as low as the one they intend to put forward!

When they learn that you are selling an insurance agency, some buyers will seek to arrange a face-to-face meeting with you, eager to build rapport. If you do not have an advisor, there is a high likelihood that you will agree to a seemingly well-intentioned offer that is ultimately far more beneficial to the buyer than yourself.

Should you question this offer, attempt to negotiate, or share your decision to hold off on accepting until you have had a chance to consult an advisor, such buyers will depart negotiations in a huff. You have then wasted valuable time and energy connecting with a sub-par buyer.

Save yourself the hassle.

Call Springtree Group well before you intend to sell your agency. We will advise you on how best to set up your finances, operations, and employee structure to attract the best buyer possible. When it is time to place your agency before buyers, we will present the opportunity to our extensive network of funded buyers and negotiate the very best deal for you.

If you have questions about our services, our registered buyers, or what the sales process might look like for you, please contact us directly.