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.

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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

Buyers who wish to purchase the entire brokerage operation or just the book of business may be equally interested in retaining staff with producer licenses or strong CSR experience. A buyer who intends to continue operating the business at its current location will want to get a sense of the volume of business generated by walk-in customers, and know how many years you have left on your lease.

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