Home › 3 Steps To Take When Buying An Insurance Agency

Did you know that three in four independent insurance agencies are expected to experience an ownership transfer within the next five years? Insurance business consulting experts agree that this is the perfect opportunity for younger professionals to take over these businesses. If you’re looking to find a cost-effective way to grow income quickly in the insurance industry, you might be thinking about buying an independent insurance agency.

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How to Acquire An Insurance Agency In 3 Steps

Know What You Want

What is the target agency size, and what product mix do you plan to offer? Are you looking for an underproducing agency that needs capital infusion to capture more opportunities? Do you want to purchase an insurance business that’s producing a steady and reliable revenue stream? What’s your target geographical location?

These are only some of the questions you should ask yourself as you search for a prospective seller. You have to know what you’re looking for if you want to end up buying the insurance agency that you want.

Surround Yourself With The Experts

Since acquiring an insurance agency is a complex process, be sure to enlist the help of qualified professionals to guide you in your decision making. It’s best to work with a team of advisors, including a tax consultant, CPA, transaction attorney, and a skilled insurance business intermediary specializing in agency sales and acquisitions.

Prioritize Due Diligence

Don’t forget to review the seller’s financials. Take a closer look at the pro forma and years of tax returns and check if the commission statements match the returns. Be sure to have a look at their operating expenses and their profit margins. Familiarize yourself with their existing carrier relationships and find out more about account retention and staff tenure.

Who is the best in Insurance Business Consulting?

Looking For An Insurance Business Consulting Professional?

The consultants at Energia Consulting Partners LLC have years of experience in the industry with a proven track record of success. We would love to assist you with the acquisition of your agency!