A lot of the time we allow ourselves to live in ambiguity. We make plans to meet between 12:00 and 12:30. We write hurried emails that we’re sure the receiver will understand even if some of the context is missing. We avoid repeating ourselves when we know we’ve been slightly misunderstood. Ambiguity is something we can manage in most aspects of our lives, but it can be extremely dangerous in business. Especially when you are selling your insurance agency.
Clarify Your Goals
The most important factors in the sale are your goals, both personally and professionally. These goals will guide you and the buyer towards an agreement and help to shape the deal. The only way to do this successfully is to define and then communicate clear goals for yourself and for the agency. That means setting out specific measurable goals for the sale, rather than offering vague buzzword-filled targets like ‘growth’ or ‘stability’.
If you have a particular role in mind for yourself, let the buyer know as clearly as possible. Don’t just say, ‘I would like to retain a level of control’ and responsibility; say, ‘I would like to remain as President and will work with your leadership to define a long-term transition strategy’. The same goes for your salary or the retention of key staff members. Ambiguity may seem like the best way to conduct certain conversations, but it won’t serve the practical needs of your business.
Make A Clear Agreement
It’s also vital that that clarity carries over into the written sale agreement. While we insist on the highest level of integrity from our clients and ourselves, it is possible to encounter parties who will look for gaps in an agreement. They will be happy to manage ambiguity in negotiations and then apply their own spin once the agreement is signed. When you make an agreement, make sure that all of your concerns and all of your needs are being met. Do not allow important goals to be simply implied, ensure they are recorded in black and white.
Finally, be as clear as you can when communicating news of the sale to your people and then to your clients. The sale of the business will be an uncertain time for everyone, the information you share about the deal needs to allay fears, not create them. The only way to do that is to be clear on what you are doing and what the definitive implications are for both employees and clients.
Selling your insurance agency is a complex process with a lot of factors to be discussed. There is no room for ambiguity, no topics that can be ‘kind of’ agreed to. You need to make yourself understood in every aspect of the deal, no matter how many times you have to repeat yourself.
