At Sukay & Associates, we have helped many insurance agency owners navigate the pivotal decision to sell.
While every agency owner’s situation is different, there are patterns we have seen time and again. Based on that, we believe these are the top 5 reasons why agencies will choose to sell in 2025.
Market Conditions:
The demand for insurance agencies is still strong, with both established and new buyers eager to invest. Your agency is likely one of your largest assets—treat it like you would a major stock investment and sell when the market is favorable.
Timing:
There’s no universal “perfect time” to sell, but your readiness matters most. As you look to maximize your value, here are some items that will impact your final deal:
●Your ability to stay on for 3–5 years
●The agency’s past growth history
●Future management succession plans
●Multi-generational production and service staff.
●Types of business your agency is servicing
Burnout:
Running an agency is demanding, especially in an industry that’s rapidly evolving. Partnering with a larger agency can provide resources, support, and a fresh perspective—reinvigorating your passion for the business.
Multi-Generational and Disproportional Partnerships:
Balancing the interests of retiring partners and those still in their prime can be tricky. Internal perpetuation often isn’t as financially rewarding as selling to a third party, but it’s worth exploring all your options.
No Other Option:
For some, selling becomes inevitable. It’s a tough decision, especially when thinking about your legacy, employees, and community impact. But, with the right planning, you can ensure your agency’s values and relationships endure.
Selling your insurance agency is a significant decision, but it doesn’t have to be overwhelming. Whether it’s market conditions, timing, or legacy concerns, having a clear strategy ensures you get the most value for your years of hard work.