Although insurance agencies for sale may attract a number of prospective buyers, not all of these buyers will turn out to be serious candidates. Some may only want to get more information about the business for their own professional, and personal reasons. In contract, others could be genuinely interested in buying the agency, but can’t afford it.
Since you wouldn’t want to waste your time discussing business with window shoppers, you may want to start implementing a solid screening process.
Tips for Screening Your Prospective Buyers
Ask Them What They Plan to Offer
Although providing your prospective buyers with some general information on your insurance agency is harmless, be sure to avoid offering specific details. First, you want to determine if the person or the organization intends to buy your business.
You need to ask them what they can offer, how they plan on financing the purchase, and their post-sale expectations. Do they expect you to train them or provide consultative support?
Have Them Sign a Confidentiality Agreement
Your competitor can pose as a prospective buyer in order to gather information. Don’t give them the chance to lessen the effectiveness of your sales efforts or devalue your selling price. You should have your prospective buyer sign a confidentiality agreement from your attorney before speaking about any specific details.
Request for a Written Expression of Interest
If you think that the person or organization is serious about purchasing your insurance agency, request for a written expression of interest. This letter of intent should state the range or exact sales offer, the type of transaction, and other important details related to their proposed purchase.
Keep in mind this isn’t a binding document. However, it can help you weed out “tire kickers” and compare multiple potential buyers.
Is Your Business One of the Insurance Agencies for Sale?
Are you planning to sell your insurance agency? Get in touch with Energia Consulting Partners LLC to make sure you are getting the best deal.