If you’re considering expansion, you’re probably browsing through listings of small insurance agencies for sale in San Antonio, TX. Since the buying process can take a chunk of your time, energy, and money, you’ll want to consider several important factors when you’re searching for an investment opportunity. We’ve rounded up a list of considerations when you’re looking to purchase a small insurance agency.
Buying a Small Insurance Business? Consider These Factors!
What motivates you to move into an existing insurance business? Is it your passion for growing within the field? Are you driven by your vision of an ideal insurance agency?
Your being a “people person” won’t be enough to sustain your ownership of an insurance agency. You’ll be better off working for an established agency if your reason for buying is solely based on your personality. However, if you see this as an excellent opportunity to turn your vision of an ideal agency into reality, you’re right on track.
Before you make the leap, be sure that you’re buying for the right reasons. You’ll be setting yourself up for failure if your motivations aren’t best served by purchasing an insurance business.
The Seller’s Motivation
The last thing you want is to acquire a failing insurance business. For this reason, understanding the seller’s motivation for putting their agency on the market is just as crucial as knowing yours.
Is the owner planning to move onto a new business venture, or are they retiring anytime soon? Their reasons for selling their insurance agency can help you figure out if the business is a sound investment or otherwise.
Determine How the Owner Valuated the Agency
If you want to know if the agency you’re looking to purchase will provide the livelihood you envision, determine how the seller valuated it. Be sure to evaluate the agency’s physical assets, the quality of employees you’ll be retaining, the agency’s sales records, and its financial and risk management.
Looking for Insurance Agencies for Sale in San Antonio, TX?
At Energia Consulting Partners, LLC, we’re committed to offering our clients a well-established approach to the agency sales process. Contact us today to make an appointment.