Selling your insurance agency requires a lot of careful planning and patience. It can take months to find qualified buyers, allow them to review your agency, and to arrange financing for the transaction. While it may take time to sell your agency, you can establish a business plan to continue to grow your firm as you prepare to sell. If you are considering selling your agency in the New Year, consider these tips:
Solidify Your Marketing Plan
Taking time in the beginning of the New Year to plan your objectives and strategies will help you create a marketing plan designed to achieve your financial goals. Set an expense budget for the New Year and create income and profit goals to cover costs. Create detailed action plans and monthly benchmarks to ensure you are on track to achieve your goals. Get your name out there! Use social media and direct marketing to target new clients. If you can create and execute your proposed marketing plan, you can grow your revenue and potentially increase the sale price of your agency.
Determine Your Agency’s Value
Do you know what your agency is worth? The value of your business is more than just the reputation of your agency. In order to get a full understanding of your agency’s value, look at your location, your revenue history, the quality of your employees, the diversity of your book, the technology you use, and the quality of the markets you cover. Buyers are looking for assurance that they will get a return on their investment. Take the time to analyze areas you could improve in the next few months to increase the value of your agency to make it more enticing to potential buyers.
Clean Up Your Financials
Taking the time to review and organize your agency’s financials will create a more appealing sale for potential buyers. Buyers will be looking at your financial records to determine the fiscal health of your business and its potential for future growth. Take time in the New Year to catch up on bookkeeping, gather up-to-date data for EBITDA, and determine previous and current cash flows. Buyers want to know they are investing in a business that will remain stable after the sale. As a business intermediary, Springtree Group can verify all of your financial records for potential buyers.
Our team at Springtree Group specializes in assisting independent insurance agency owners with planning and preparing for the sale of their agency. Email us at email@example.com to learn more about our services and resources.