Buying an insurance book of business is a proven method to expand your business and cater to more people. However, not all insurance agency businesses for sale will promise to yield great results. Some may not fit your specialization, while others are in terrible shape that saving them may be too difficult and costly. Thus, you must do extensive research to get the best insurance agency and make the most of your investments.
What Should Buyers Ask Before Purchasing a Book of Business?
How Is the Product-Market Fit?
Product-market fit is critical to the success of an insurance agency. If your strength is in selling retirement policies, it will be challenging to sell the product in an area where young professionals mostly populate. That is because these customers have different priorities at this point in their lives.
Most of them are more concerned about getting health insurance or an auto insurance policy. Hence, the products you are selling do not fit the demands and needs of the people you are selling them to.
Are the Present Customers Likely to Move Forward With Me?
Look for a book of business with financially established customers. It can be frustrating to deal with policyholders who can easily be swayed by discounts or incentives for a slightly better deal. This negotiation may happen several times within the lifespan of their policy, and dealing with it, again and again, may take so much of your time and energy supposedly allocated for other business matters.
What Are the Reasons for the Sale?
Knowing the reasons behind the sale of an insurance agency gives you an idea of what you will be dealing with in the future. Is it because the owner wants to retire after a successful career? Or is it because the agency is not doing well in sales? It could also be that the owner wants to try something else.
Understanding the specific reasons will allow you the chance to self-reflect if you are capable of getting past the challenge that you will eventually face. Additionally, it will help you strategize and innovate actions to overturn the predicament.
Looking for an Insurance Agency Business for Sale?
Doing your research is better said than done. It is unarguably a daunting and tedious process, all the more when you don’t have substantial knowledge of all the intricacies of the business. That’s where we at Energia Consulting Partners LLC come in as your partner in ensuring the success of your business expansion. Please make an appointment today to take advantage of our consultation services!