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