Loss Prevention: Your Guide to Selling an Insurance Agency in Oklahoma City

The insurance industry is trending upward, with a 2.4% annual increase in the last five years, which is attractive to prospective business buyers. It’s a seller’s market, so owners interested in selling an insurance agency in Oklahoma City should start to put their exit plans in motion. Learn how to prepare your insurance business for sale with these four tips.

4 Tips for Selling an Insurance Agency in Oklahoma City

Ultimately, a business is only worth what a buyer is willing to pay for it. This guide will help you earn top-dollar for the insurance business you’ve spent so much time and effort building.

  1. Minimize Client Concentration

    Like other service-related businesses, insurance agencies often fail to diversify their client portfolio, which is a considerable risk for buyers. They fear a major account leaving after the acquisition. They’ll likely want to discount profits from this client in your overall valuation. If you have any customers that account for 20% or more of your revenue, you should invest in your sales/marketing efforts to acquire new leads.

  2. Secure Insurance Designations

    Agencies are more profitable when their team members have designations or certifications in specific areas of insurance. You can position your business as an industry-leader by encouraging staff to obtain the appropriate designations that relate to their specialized service. Since insurance is such a crowded field, you’ll want to put extra effort into your business to stand out.

  3. Continue to Invest in Operations

    Selling an insurance business in Oklahoma City can feel like a full-time job within itself. But, that doesn’t mean it’s time to get lazy when it comes to your day-to-day operations. Your valuation is mostly dependent on your profits and revenues, so the minute you stop selling is the day your sales prices will decrease. Working with an intermediary allows you to maintain an active role in your business while moving along in the acquisition process.

  4. Tie Up Loose Ends

    One step in the sales process that’s often overlooked is book preparation. Prospective buyers want to see that your figures are current, so you’ll need to update your records accordingly. You’ll also want to prepare any other supporting paperwork or documents that are necessary to the sale.

Many business owners aspire to sell their business as fast as possible, but that isn’t always the best way to earn top-dollar for your asset. You should take time to prepare your business, understand the buyer market, and find a candidate who complements the visions you have for your organization post-sale. Sunbelt Business Brokers of Oklahoma City can help you prepare from listing to closing. Contact our team of brokers to learn more about the sales process!

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