When it comes to selling your insurance agency, you can’t expect to achieve successful results without careful planning and execution. Regardless of your reason for selling, it’s best to enlist the help of an insurance business consulting professional. Before you book an appointment, have a look at the most important points for selling an insurance agency.
Points to Examine for Selling Your Insurance Agency
Have an Exit Strategy in Advance
Planning an exit strategy for two to five years before deciding to sell your insurance business is a must. This should give you enough time to do your research and come up with a sales strategy that can help you get the best deal.
Additionally, you’ll have enough time to make a more appealing sale by cleaning up the financials. The exit strategy should feature your short and long-term goals, business valuation, selling strategies, sales terms, and the key persons who can help you manage the selling process.
Determine the Value of Your Insurance Agency
Keep in mind that your agency’s value serves as the theoretical benchmark while the price is the agreed-upon amount of money it takes to transfer ownership. Moreover, the net proceeds refer to the actual dollars you’ll get to keep after taxes and expenses. Before you set a price and place your business on the market, be sure to consider the following factors:
- Location of your agency
- Number of offices
- Revenue history and growth rate
- Cash and asset management
- Sales management
- Client retention rates
- Employee productivity and quality
- Dependency on specific industries or accounts
- Quality of the insurance markets
- Age and platform of technology
Know What You’re Selling
Before you put your insurance agency up for sale, you have to define what you’re selling. For example, you have to consider another set of specific variables if you own the space your business is located in.
You have to decide if you’re willing to sell the building to a buyer who wants to purchase it. If you’re only willing to lease it to the buyer, you have to set a price for it.
Looking for an Insurance Business Consulting Professional?
At Energia Consulting Partners LLC, we offer a well-established approach to the agency sales process. We’re here to help you develop an effective exit strategy so that you can maximize the value of your insurance business. Call us today to schedule your appointment!