Home › 3 Things You Should Do Before Buying an Independent Insurance Agency

Now that a large number of baby boomers are ready to retire, those who’ve spent most of their lives building independent insurance agencies are planning to sell their businesses. Many of these sellers are looking for the right buyer to take good care of their clients. If you’re looking to find independent insurance agencies for sale in New York City, NY, you’ll have to take certain steps to ensure successful business transfers.

couple submitting documents insurance agencies for sale new york city NY

Buying an Independent Insurance Agency? Here’s What You Should Do:

  1. Figure Out What You’re Looking For

Before you try to search for a prospective seller, be sure to figure out the size of the agency you want and the product mix you intend to offer. Ask yourself if you’re looking to find an agency that requires a capital infusion to capture growth opportunities or if you prefer one that produces a consistent revenue stream.

You should also consider the agency’s geographical location, local competition, the type of insurance products needed, and the ability to create synergies and reach new clients.

  1. Find a Support Team of Advisors

Since purchasing an independent insurance agency involves a complex process, it’s best to surround yourself with experts, including a tax consultant, CPA, and transaction attorney. You should also consider hiring a trusted insurance business intermediary that specializes in agency sales and acquisitions. Besides helping you avoid common pitfalls, these professionals can also help you make the right decisions.

  1. Prioritize Due Diligence

You can examine the health of the agency by checking its existing carrier relationships, account retention, and staff tenure. Be sure to review the seller’s financials from the pro forma to years of tax returns. Check if the returns match with commission statements and take a look at the business’ operating expenses and profit margins.

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Looking for Insurance Agencies for Sale in New York City, NY?

If you’re ready to purchase the agency of your dreams, contact Energia Consulting Partners, LLC today. We’re here to help you every step of the way to ensure a smooth transaction.