Selling Your Insurance Agency
Have you started thinking about how to reap the highest return on your significant investment of time and effort over many years in building your property and casualty insurance brokerage?
Learn how Synergy Business Brokers can assist you by filling out our form.
You probably have these questions:
WHAT PRICE SHOULD I ASK FOR MY INSURANCE AGENCY?
Some buyers will want to acquire your entire brokerage business and continue operating it at the same location. Others will prefer to buy only your book of business.
Regardless of whether a buyer is interested in purchasing just your book of business or the entire business, he or she will evaluate the following aspects of the business:
- the commission growth trend in the past few years, including the percentage of commissions generated by homeowner vs. auto policies
- the breakdown of your commissions from commercial vs. personal policies
- the quality of the carriers with which you have direct appointments
- your historical loss ratios
- your policyholder retention rates
- revenues from fees charged to commercial customers
SHOULD I SELL TO A LOCAL INSURANCE AGENCY OWNER?
You may have received standing offers to buy your business from local agency owners you already know. However, in our experience companies that are outside the insurance industry typically present offers that reflect a higher multiple of commissions than industry insiders.
SHOULD I USE A BUSINESS BROKER TO HELP ME SELL MY INSURANCE BROKERAGE?
Just as you match your clients with the most suitable carriers based on their claims history, risk profile and the carriers’ products so, too, do we introduce insurance brokerage owners to those buyers most likely to present the most attractive offers.
Regardless of whether you intend to exit the business in the next 2-3 years, feel free to contact our insurance specialist with any questions about the sales process or for a preliminary recommendation for an asking price. We can probably also suggest steps you can take now to enhance the value of your agency when you are ready to sell. Please be assured that any information you provide about your business will be kept strictly confidential until such time that you might engage Synergy Business Brokers to represent you and a potential buyer executes a non-disclosure agreement.
Contact the Synergy Business Brokers by completing this form and you will be contacted shortly: