The thought of selling your business must’ve come to your mind after realizing there’s nothing you can do to pull your insurance agency back from the brink. However, the good news is that you can still sell a business that’s not doing well. With the help of experienced brokers, it won’t be impossible to find someone who might be interested in purchasing a failing insurance business for sale.
How to Sell a Failing Insurance Business
Clear Up Any Litigation and Debts
If you have outstanding legal issues linked to your insurance agency, buyers will definitely give your business a wide berth. For this reason, it’s best to prioritize clearing up any litigation and pay off small and large debts. Although a business with debt can still be sold, you’ll increase the likelihood of securing a higher selling price for yours if you decide to resolve your legal issues and reduce your debts.
Identify Prospective Buyers
Your chances of finding a buyer who might be interested in your business are promising if you know how to identify them. For starters, try to understand the common reasons why people would want to purchase a failing business. These include the following:
- They’re acquiring your customer base, website, shop location, and other assets
- They’re incorporating your business into their existing one
- They’re able to carry the loss of your failing business until it becomes profitable
- They intend to offset their tax obligations by purchasing your business
- They can restructure your insurance agency and turn it into something that makes a profit
Be Honest
If you want to establish trust, be honest with potential buyers about how your business is performing. Give them the gory details about your agency’s revenue and don’t forget to mention any losses during the times when your business was struggling.
Is Your Insurance Business For Sale?
At Energia Consulting Partners LLC, we specialize in all aspects of the sale of an insurance agency. Contact us now to schedule an appointment.