Buying an Insurance Agency
Energia Consulting offers our clients a well-established approach to the insurance agency sales process. Our experience and knowledge of the industry have successfully helped negotiate the buy and sell of over $600+ million in premium. If you are looking to buy an insurance agency, we can assist in finding the right opportunity and help secure the appropriate financing needed to complete the purchase. With us, buying an insurance agency will be a smooth process.
Finding an Insurance Agency to Purchase
You want to purchase an agency – but where to begin? Reputable agencies with a robust book of business that are a good fit for your needs don’t usually just fall into your lap. When it comes to finding agencies to purchase, you have only a few options: search for online listings of agencies for sale, cold call agencies in your area looking for an owner ready to retire or sell, or hiring an intermediary such as Energia Consulting Partners.
Insurance agency sales is a seller’s market. Increased buyer competition can make it very challenging for a buyer to find a suitable agency to purchase. While online directories of insurance agencies for sale do exist, the options on these sites are usually swarming with competition and other offers, making it harder for you to make a competitive offer. And the stiffer the competition, the less likely it is that you are going to 1) find the perfect fit for your needs and 2) pay a fair price.
Cold calling has obvious downsides. You might call hundreds of agencies before finding an owner ready to retire or get out of the business. Even if you do find a seller, the chances of their business being in an organized state for proper valuation is slim. Finding insurance agencies for sale this way can be tedious, time-consuming and often not effective.
Partnering with an intermediary such as Energia ConsultingPartners has many benefits. Along with our experience, Energia Consulting has many available resources to aid our clients in the buying process, including a list of sellers who are serious and ready-to-sell their businesses, compiled to help buyers find the right company for purchase and assist in making sound business decisions. As part of the search process, we’ll also conduct the necessary due diligence to make sure the business is profitable with a potential for growth and no red flags that could hinder the transaction or the future of the business. As professional intermediaries, we’ll walk you through every step of the buying process with expertise and guidance.
Once the right agency for purchase is located, the next step is to secure financing. While it’s important for the agency you are buying to have their business operations and financials in order for an accurate valuation, it’s equally important that buyers do the same in order to secure the necessary financing to purchase. Lenders want to have a clear picture of your finances and how your business is set up.
Lenders want to have a clear picture of your finances and how your business is set up. In our decades of experience in the insurance industry, we have developed relationships with several major lenders. We can also lend you our own expertise when it comes to preparing your business for borrowing capital. Based on monthly cash flow, we can show you how to structure the transaction appropriately in order to help you succeed.
Deal Terms Guidance
A second set of eyes can be helpful when it comes to negotiating a deal. Energia Consulting can assist in looking over the deal terms and transaction structure of an offer and provide advice on where improvements can be made. Our experienced consultants thoroughly review the various components to a deal that can have a significant effect on the overall attractiveness of an offer.
An accurate valuation is a critical step in the buying process. Quick valuations that don’t take all factors into account can yield inaccurate estimates. As a buyer, you don’t want to pay more than an agency is worth. We’ll make sure that never happens.
Energia Consulting’s decades of experience in conducting and reviewing valuations has given us a knowledge of the market value of insurance agencies that is second to none. We work hard to evaluate and negotiate offers that best meet your needs. By acting as a buffer between you and the seller, we are able to obtain answers to difficult, yet highly pertinent questions to assist you in making a sound business decision.
Managing the Buying Process
Buying an agency is neither a quick or simple procedure. By hiring Energia Consulting, we can handle all the important aspects of locating an agency so that you can focus on preparing to be a new business owner. We closely manage the process in order to minimize common disruptions and hurdles, providing a smooth transaction from start to finish.
Ready to Buy? We are here to help.
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