By the time we meet many of our clients, they already have one eye on retirement. They only start thinking about selling their agency, and contacting us, as they reach their late fifties or early sixties. A sale is something they haven’t considered while they took care of other things. This often leads them to believe that they don’t know how to sell the business. They think they haven’t done it before. You only sell your agency once, right?
In fact, most agency owners have sold their agency many times before. As an owner, you start selling the agency from your first meeting with a carrier. In those meetings, you worked hard to convince the carrier that your agency could be a valuable partner in selling their product. In doing so, you sold your business in the very same way you sell it to a potential buyer.
Expertise
When you meet with a carrier, the first thing you demonstrate is your expertise. You want to communicate a clear understanding of the industry and knowledge of the details of selling insurance. Carriers don’t want to associate with below par agents. The work you put in is vital in securing the sales agreements. Likewise, buyers prefer to invest in agencies that already offer expert knowledge. A high level of expertise adds to your value to a buyer and is key in any sales proposition.
Contacts
Your list of contacts is just as vital in this respect. Carriers will put more stock in your potential as an agent if you can demonstrate a wide network of industry contacts and client prospects. The same goes for potential buyers. A buyer isn’t just buying the building or the name; they’re buying the entire business. Your agency’s history, network of contacts and sales potential will be hugely important in generating buyer interest.
Service
A carrier’s biggest focus will be on the service you provide. Selling insurance isn’t about getting businesses and individuals to purchase coverage; it’s about a holistic service that offers real benefits to clients.
The service you provide to your clients and your core values as an insurance agency will influence a buyer’s decision. A big part of buying or selling an agency is finding the right fit. A right fit gives the new entity the best chance for success after the sale because it makes for a smooth integration.
You may think you don’t know how to sell your agency. You may not be thinking about selling your agency at all. The fact is, however, you’ve been selling that agency for years.
Your insurance agency will go through many different stages which will possess challenges along the way. Download our whitepaper and find out how each challenge affects the long-term value of your agency.
