Ideally, insurance agencies for sale should have gone through a solid valuation process to ensure their owners will get the best price for their business. If you’re an agency owner who’s planning to sell the insurance agency you worked so hard to build, you should consider reaching out to a professional who can give you a clear perspective of its worth.
Top Questions Asked About an Insurance Agency’s Worth
Who Knows What My Agency is Worth?
If you think your accountant, an individual buyer, or someone you know who sold their agency knows what your agency is worth, think again. The accountant who only got involved in an agency deal years ago or the buyer who only knows what they can afford to purchase, or the friend who sold their agency wouldn’t have the slightest idea of what your business is actually worth.
The only one who has a clear idea is the insurance consulting professional who’s had their pulse on the marketplace. They’re the only ones who get to see volumes of deals and transactions involving the sale of an insurance agency. For this reason, you can be confident they know your agency’s worth.
How Can I Sell My Agency for the Most Amount?
Selling your insurance business for the most amount requires you to negotiate with multiple buyers that are well-capitalized. Negotiating with only a few buyers might cause you to end up leaving a significant amount of money on the table.
Although larger buyers may have done deals, not all of them end up winning in competitive bidding. It’s important to note that their ability to close a deal can change because this will depend on their equity structure, credit facility, and financial performance. In other words, they won’t give you the right answer.
You also have to factor in the much-needed preparation for the sale process because you won’t want to respond to a prospective buyer’s solicitation without being prepared for the transaction.
How Does One Know the Worth of Insurance Agencies for Sale?
Contact Energia Consulting Partners LLC. We understand the challenges of business valuations, and we’re here to help you achieve success.