So You Think You Want To Sell Your Insurance Agency
Selling an insurance business is a big decision! You spend years investing your time and energy into this enterprise, and youve put a lot of passion into it as well you dont want to sell it too quickly and quite possibly leave money on the table! That said, there are plenty of reasons why selling might be the right choice for you. Here are just a few:
The truth is, there are a million reasons why you might want to sell your company, but its important to get crystal clear on what your reason is. Selling a business is a big decision, and you dont want to regret it. Remember once youve sold your business, you cant get it back. Make sure that selling is truly what you want to do, and then proceed with confidence.
Write A Personal Letter To Agency Owners
Consider a direct mail campaign and write letters to agency owners in the area to let them know that youre looking. Dont write the plain vanilla letter everyone else sends out. Those will just go in the round file unless you get lucky.
When you put your mailing list together, cross reference as much information as you can. Try to find the agencys financial size, carriers represented, age, web presence, specialization, etc. Do a Linkedin search on the agency.
For goodness sakes find out who the actual owner is! Then, instead of writing a form letter, write a personal letter to that agency owner. Sprinkle in some things about the agency that impressed you. Flattery helps. If you and your letter stand out youll have a better chance for a return call.
Who Is Your Buyer
Youve calculated the total value of your agency, and youve decided how you want to be paid now its time to find a buyer and close the deal.
Who do you want to buy your business? Are you planning to pass it on to a friend or family member? Is one of your employees ready to take on ownership of the company? Great! Even if your potential buyer doesnt have the cash or credit necessary to purchase the company outright, there are newer forms of financing that can allow you to sell your company to your trusted successor in a way that works for everyone.
And if youre looking to sell your agency to a larger company, a good sales broker can help generate interest for you. Business brokers can reach out to contacts in your industry and help you market your agency as a potentially profitable acquisition for larger companies. Then, youll be able to take a look at the competition and accept the most favorable sales offer for you.
When it comes to choosing the right buyer, remember its important to do your due diligence. Even if you have a personal relationship with your hopeful successor business owner, its important to ensure that youre putting your company in good hands. Ensure that your buyers goals and intentions for the company are in alignment with your vision, even if theyre looking to make some fresh changes. Also, make sure that they have the financial stability and management ability in place to successfully maintain and grow the company to new heights.
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Buyers And Sellers Insurance Agency Overview
What are Local Insurance Agents?
So, what exactly are local insurance agents, and why you should care?
The definition or term is, not yet clear by any means.
Some entities or people, refer to it, as a local recording agent as a description,
or an insurance companys general agent in other locations.
It can get confusing if you do not work within the industry.
However, if you are an agency owner, its a good idea to always gain further knowledge.
You may think you have certain authority over certain acts,
when in your contract, it would state otherwise.
This can become a tricky situation when a claim or loss should occur.
This is when apparent authority gets blurred into actual authority.
So, save yourself the headache of deciding the definition in the courts of law,
and just read over your contract, or ask a professional if you are unsure.
Asking beforehand can avoid future problems.
Plus, it can save you more than time and future headaches,
it helps to secure your assets from future loss.
Soliciting Agent The Next Phase
This is where the meat and potatoes of the industry is at, or the front lines of sales is anyways.
These agents are labeled, soliciting insurance agents.
They are designated and responsible for the true sales process
and are termed the true insurance sales-person.
A title many enjoy in the insurance industry today.
A soliciting agent may work for a general agent, and is responsible for the initial contact with the insured.
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Industry Terminology Insurance Agency For Sale
The wording of substandard insurance is used interchangeably with nonstandard insurance.
This is a discredit to the actual nonstandard market for both
insurance professionals and consumers alike.
The State of California, for example, would never allow for
its people to have a substandard insurance market.
It sounds ridiculous once you think about it, and say it out loud to yourself.
So, the confusion of the two should never factor in the financial health of a nonstandard insurance agency.
It is important to have a clear idea of what type of business you are interested in buying or selling.
As you can see, each business for sale or to buy, has a specific niche or industry group that it belongs
to, as an example, insurance agencies.
Specialized Business brokers are equipped with knowledge and experience in each industry on the market.
So, reach out for expert advice, when ready to buy or sell, your insurance agency!
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Agency Marketing Services Provided By Capital Resources
Since 2005, Capital Resources has been a trusted lender to insurance agency owners across the country. During that time, we have learned that when the time comes for you to buy or sell an insurance agency it can be very difficult to know where to start. Buyers and sellers are often hesitant to commit to the fees charged by business brokers or arent sure if it is worth paying to list their agency for sale on someones website. That is why Capital Resources is pleased to offer insurance agency buyers and sellers the opportunity to view and list insurance agencies for sale across the entire United States.
Whether the time is right for you to sell your agency, buy your new agency, or if youre just interested to see what activity might be going on in your local market, we hope you will find our Agency Marketing Services of useful.
Member registration is required, but it is FREE to join.
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We provide you with access to the Service so that you can post information about an agency you may be selling or learn information about an agency that you might be interested in buying. We grant you access to this website during the term of this agreement solely to use the Service. You may access, download, and print materials as necessary to use the Service and information. You may not license, copy, distribute, create derivative works from, frame in another Web page, use on any other website, or sell any information, databases, or lists obtained from the Service. When we request, you agree to provide true, accurate, and complete user information. You will not access or attempt to access password protected, secure or non-public areas of the website without our prior written permission. You will comply with all privacy laws.
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Insurance Agencies For Sale
I apologize if you thought this page would have a listing of insurance agencies for sale. It does not. The purpose of this article is to give agency buyers some tips on finding agencies for sale and on how to get the attention of the owner or broker representing the agency. First, I will go ahead and list some websites where you can find agencies for sale.
Agency Equity has become a top website for finding agencies for sale online, as well as agency valuation, financing, sale and acquisition specialists. Joe Totah has done a very good job of aggregating an array of resources for insurance agents. It is an advertising site so the focus, visually, is on click ads paid for by a number of vendors . Buyers are required to register before being able to contact the owner of a listing. All email communication goes through Agency Equitys internal system, which can be a bit frustrating, particularly if the parties are not regularly checking their email on the website. Each ad shows a click count, so youll have an idea of the amount of interest the agency has received. The listings are posted in chronological order, with the newest on top of the first page.
When you find an agency for sale, expect the process to go something like this:
3) Complete the requested form and send them back quickly with a request for more information.
How Do You Want To Be Paid
Once youve discovered a fair sale price for your business, its time to decide how you want to be paid. As usual, there are multiple options three, to be exact and several factors to consider. Lets look at the three methods of payment you can choose:
- The Lump Sum Method: Plain and simple, this is the most straightforward way to bring home the amount of money your business is worth. Your buyer will take out a loan for the full purchase price of your business and cut you a check! Its as simple as that.
The simplicity of this option is the beauty of it you receive your money all at once, the deal is closed, and you can move on. If youre looking for an easy, one-time payment, this option is for you.
However, its important to keep in mind that this is the riskiest option for your buyer. After all, if anything goes wrong and the acquisition doesnt produce the projected growth, your buyer has lost a lot of money. As a result, buyers are more likely to offer the lowest amount of money possible, and you could end up paying for the simplicity of the deal.
Keep in mind this method of sale still carries a significant risk for your buyer. Even though theyre no longer expected to pay the full amount of the sale upfront, theyre still committing to a specific dollar amount to be paid over time. That means that theyre still not going to offer you the absolute highest valuation you could possibly ask for.
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Independent Agents Small To Large Agencies
Most people are familiar with this term, independent insurance agents,
more so than the others.
The term however to some degree is a misnomer.
Why you ask, because independent agents have contracts with various insurance companies,
but unlike general agents, are not exclusive.
So, independent agents will represent several insurance
companies and place insurance with only those they prefer.
The only restrictions would be found again, in the agency appointment agreement letter.
Always review this area to make sure no restrictions are authority is being overstepped.
Tools of the Industry or Trade
An independent insurance agent will have internet
access to these insurance companies,
where they can rate and bind a policy.
Always check with each carrier appointments guidelines.
This way you know the exact steps and authority you have with them.
In most cases, independent agents will have the responsibility of taking the initial
deposit on an insurance plan they sell to an insured.
The insurance agent would then upload the policy where it is bound over the internet.
This time stamped policy application is then transmitted over to the insured for signatures.
The method of delivery to the insured can come in several forms.
It can be done through the traditional way, as a walk in.
This is where the insured physically comes into the office, sits down and signs the application for coverage.
A trend that use to be far more popular in the past decades.
We Help You Achieve More
Were on a mission to be Americas small business bank. Our deep knowledge and product expertise help us match you with the best solution to meet your unique needs. Were proud to invest in Americas business owners because your drive drives us.
Live Oak made it possible for our family to regain full control and buy back the agency that is more than a business to us. We are proud to serve more than 375 first responder organizations in three states and were grateful that Live Oak gave us the opportunity to continue supporting our clients.
– Wes Fritz, Owner of General Insurance Agency, Inc.
A DIFFERENT APPROACH TO SMALL BUSINESS LOANS
When you work with Live Oak, consider us a true partner to help you buy, build or expand your business.
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How To Find Insurance Agencies For Sale
2 min read
Recently, one of my OAA members came to see me for advice on buying an insurance agency. His first question was, Where can I find one for sale?
His second question was whether he could hire someone to find a deal for him. In larger agency acquisitions this is very common, but in agencies that will sell for under $1 million dollars, it isnt, because there arent enough deal fees to entice merger and acquisition people. So, youre going to have to do it the hard way.
Insurance Brokers For Sale
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Fully operational Insurance company for sale.Doing business more than 3 years already. Audited Financial Statements available.Licensed for direct insurance and reinsurance also
Four partners in the commercial insurance space joined forces in 2020 to offer a competitive tech enabled commercial insurance wholesale solution to retail brokers. By utilizing a proprietary rating system, the Company enables retail agents to rate, quote, bind, and issue most commercial insurance…
The diverse client base, covering a group of insurance lines including Individual , Senior , Life and Long-Term Care, and Group Coverage , was built by a 30-year industry veteran who sold upon retirement in 2015.The Agency proudly offers highly personalized…
Since 2009, this hands-on Seller has worked with top-tier carriers that offer the best combination of price and service to the Corona and Riverside Country area.This family-owned agency is only selling the Nationwide Block of Business.All 203 policies have been in force for a minimum of 3 years.The…
Since 1995 this centrally located Massachusetts Business has served clients all over the state, grown across six neighboring New England States and has garnered recognition across the country.The business model is the offering of comprehensive regionally-focused employee benefits planning services…
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What Are The Benefits Of Direct Deposit/electronic Payments
- Your paycheck is deposited into your account on payday without you making a trip to the bank.
- A check that comes while you are away from the office is deposited without delay.
- Recurring payments will be made without ever being charged a late charge, even if you are on vacation.
- You save the time it takes to write checks, address envelopes and mail your payments. You reduce your check costs and eliminate the cost of stamps and envelopes.