With the insurance industry on the rise, now may be an opportune time to cash in on the hard work you put into building your agency. In the last five years, the industry has grown by 3 percent to reach $167 billion in revenue. If you’re thinking about selling an insurance agency, consider listing your business sooner rather than later in order to receive top-dollar for your efforts.
Utilize the following steps from Sunbelt Business Brokers to successfully sell your insurance agency.
Whether you plan on retiring or taking on another business opportunity, having an exit strategy in place makes the process of selling an insurance agency less overwhelming. Remember, it’s never too soon to plan how you’ll exit your business.
Consider the following questions when developing your exit strategy:
Addressing these questions while planning your exit strategy can help simplify the selling process and further prepare you for your next steps.
Prospective buyers will want to inspect every aspect of your business, especially financial details. As you begin fielding offers from interested parties, be prepared to present:
Consider working with an attorney or accountant to help you prepare and organize any other important documents you may have.
Before listing your insurance agency for sale, ensure it’s in the best possible shape to maximize its value. Identify areas of weakness and make a plan to fine-tune every aspect of your business from marketing and daily operations to the building itself. It’s important that you take a critical look at your business before you market to prospective buyers to receive the maximum return on your investment.
As the business owner, you may have an idea of what your business is worth. However, oftentimes an owner’s perception of value is clouded with an emotional attachment. To avoid any uncertainty and have a firm asking price for potential buyers, it’s best to receive a third-party professional valuation. Having an impartial entity value your business will help you determine a fair listing price.
The last and most important step in selling an insurance agency is listing it for sale. While you can choose to list the business privately, it’s best to enlist the help of an expert. A professional business broker has the industry experience to market your business successfully. Additionally, a business broker will handle most of the grunt work involved with the sales process while you continue to handle the day-to-day operations of your insurance agency.
If you’re ready to list your insurance agency for sale, contact your local Sunbelt Business Brokers office! Our professional brokers have years of experience matching insurance agency buyers with sellers and are ready to help you sell your business today.