When you have an insurance business for sale, you wouldn’t want to waste your time on buyers who don’t have the qualifications or capabilities to purchase the agency you offer. Unless you implement a prospective buyers screening process, weeding out the wannabe shoppers, tire-kickers, competitors, and sharks won’t come easy. We’ve pulled together some tips to help you separate the strong bets from the unqualified buyers.
How to Spot a Qualified Buyer
Know Your Knockout Factors
Screening the responses you get from your sales ads will be easier if you’re clear about the attributes of your likely buyer. It’s best to make a list of the professional certifications, business experience, the amount of cash you’ll require on closing day, the type and level of collateral you’ll need as security, and the timeframe your prospective buyer must prepare to act within.
Include a Pre-Qualification Form in Your Ads
Once you’ve made a list of your knockout factors, be sure to mention them in your ads and require your prospective buyer to provide you with the information you need. You’ll have a solid lead if a potential buyer earns a line-up of positive answers. Conversely, you won’t have to pursue the interest of those who give you a string of negative responses in your pre-qualification form.
Verify the Information They Provide
You should verify the prospective buyer’s qualifications and capabilities to purchase with the help of an attorney and an accountant. You’ll have to ask the buyers to provide you with copies of financial statements, certificates, professional licenses, and other pertinent documents. If the buyer is serious about purchasing your business, they’ll release information after signing confidentiality or mutual non-disclosure agreements.
Issue an Immediate Response to Qualified Buyers
You’ll want to follow up with hot leads promptly. Once you’ve shortlisted qualified and financially capable buyers, be sure to issue an immediate response.
Do You Have an Insurance Business for Sale?
At Energia Consulting Partners, LLC, we’re here to help you get the best deal. Contact us today to learn more about what we can do for you.