Are you ready to move on from your insurance agency? Whether you’re moving on into retirement or to another industry, you should have an exit strategy in place before you put up the “insurance agency business for sale” sign. We’ve rounded up some tips to help you start taking stock and making plans now.
How to Have an Exit Plan in Place
Calculate Your Insurance Agency’s EBITDA
If you don’t know your agency’s Earnings Before Interest Taxes, Depreciation, and Amortization (EBITDA), it’s best to enlist the help of a CPA to help you calculate it. Since this metric is an excellent indicator of the state of your insurance agency, it can help you determine the realistic value of your business.
Determine Your Insurance Agency’s Valuation
Decisions to sell or purchase insurance agencies used to be based on the commissions that these agencies brought in. Nowadays, insurance agency owners use more accurate valuation methods that take expenses into account. These methods focus on actual profits rather than just income.
When it comes to determining your agency’s value, it’s best to stick to the numbers. Unless you set a realistic price, your sales efforts won’t be as effective, and you won’t complete the sale process faster.
Know Your Tax Implications
If you want to enjoy tax benefits when you’re selling your insurance agency, you’ll need the help of a good CPA and tax expert. However, you’ll still have to plan and lay the groundwork even before you reach out to these experts or before the actual sale takes place.
Find a Prospective Buyer
Finding the right buyer allows you to learn more about their philosophy and leverage it to increase the likelihood of selling your insurance agency for the right price.
Putting Up an “Insurance Agency Business for Sale” Sign?
If you’re looking to sell your insurance agency anytime soon, Energia Consulting Partners LLC is here to help. Contact us today to find out what we can do for you.