Is this your first foray into the insurance industry? Before you decide to shortlist and buy insurance agencies for sale in San Antonio, TX, you have to realize that you’re about to make a huge investment of energy, time, and money. Without talking to the owners and asking the most important financial questions about your prospective agencies, you can’t expect to make a wise decision.
Financial Questions to Ask Before Making the Leap
Does the Sale Include the Book of Business?
When you’re buying an insurance agency, you shouldn’t forget to ask its owner if the books of business are included in the sale. If the deal provides these, you’ll have to assess how much the book of business is worth thoroughly. Otherwise, you won’t be able to have an idea about the agency’s value and the initial sales work that’s needed post-sale.
Does the Sale Include the Real Estate of the Agency?
If your prospective insurance business has office space, you’ll have to ask if the agency owner owns the office or leases it. Once their ownership is confirmed, you’ll have to determine whether they’re looking to include the agency’s real estate in the sale. If they’re leasing the space, it’s important to ask if the lease is transferable if you decide to purchase their business.
How Much is the Actual Worth of the Agency?
Did you know that the worth of an insurance agency can be calculated in several ways? For this reason, you shouldn’t forget to ask its existing owner how they came up with their asking price. Your chances of bargaining power are greater if a valuation wasn’t conducted by a professional broker or valuation service.
One way to make sure that you’re getting the best deal on your prospective insurance business is to hire a professional business broker who knows the industry’s ins and outs. They can assist you with every aspect of the buying process, including finding an insurance business to purchase, financing assistance, deal terms guidance, evaluation, and managing the buying process.
Looking for Insurance Agencies for Sale in San Antonio, TX?
The team of experts at Energia Consulting Partners LLC is ready to help you find your dream insurance business. We’d love to assist you with the acquisition of your agency! Contact us today for inquiries!