Selling Your Insurance Agency Or Book of Business!Jacob
I have been addressed this question so many times that I am losing count. How much is my insurance practice or business book worth? To answer this question, I will draw on my experience as a broker and bring to light some of the things to avoid when selling your insurance agency or business book.
In the first insurance agency deal I broke up with, I had a buyer who was looking for a small independent broker. I found one that earned $ 232,000 a year in commissions, and the starting price was $ 585,000 or 2.52 times the annual commissions. I knew from my searches that it was difficult to find independent insurance agencies for sale, so I encouraged buyers to bid quickly. The seller really liked my buyer and accepted an offer for $ 550,000 or 2.3 times more commission. Because most business books sell for 2 times more commission, this deal was priced a little higher than most, but I still think my buyer got a fair deal based on their needs and willingness. sellers get part of the loan.
Steps to sell your agency or business book:
1. Get your business book evaluated by a professional business broker
2. Set a starting price to sell your insurance agency
3. Sign a listing agreement with a qualified business intermediary
4. Buy your offer for multiple offers
5. Accept an offer and begin the negotiation process.
6. Negotiate the agreement and provide the buyer with due diligence documents.
7. Finish the negotiations and close the deal.
Although I have outlined the steps to sell your business book, I do not recommend that you go alone, this can be like representing yourself in a court case, although you can know all the facts better than anyone, you can be emotionally connected to your business and that makes it dangerous for you to do it alone. Call me, we will evaluate your book for free and we will also help you build an agreement that will give you the maximum benefit when you sell it.