You might have been thinking about selling your insurance agency for a long time. Maybe you’re ready, maybe you’re not. Either way, before you get the process started, consider these do’s and don’ts:

Do:

  • Accurately determine revenue (commission) levels by carrier and growth for the last three years by carrier
  • Eliminate unnecessary expenses associated with the business
  • Make sure you’re in good standing with each of your insurance carriers that are important to your agency 
  • Use a broker who has knowledge of the industry in your state, knows the best buyers, and understands the documents required to move your agency through the process
  • Prepare a trial set of documents that provides a good overview of your insurance agency, and be ready to replicate that at the end of each and every month going forward
  • Have a confidentiality agreement in place with anyone you discuss the agency with
  • Control who gets to see any documents associated with your agency
  • Make certain your online presence is up to date in every respect
  • Work with a broker who can assure that all communications with potential buyers will be held in strict confidence and that they will have the appropriate documents in place to prevent potential buyers from taking their business
  • Consistent revenue patterns across the book of business
  • Client retention rates across all segments
  • Systematic approaches to account management
  • Scalable processes that work for accounts of all sizes

Don’t:

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