image Things to Consider When Selling Your Insurance Agency

Things to Consider When Selling Your Insurance Agency

Are you thinking about selling your insurance agency? Or maybe it is time to plan for your retirement? There are many things to consider when the time is right.

The result of your hard work is a business with enough financial worth to provide for you as you pursue other dreams. How to sell an insurance agency and how much you can sell it for are two pressing questions you’ll find answers for in the following guide.

Whichever is your highest goal with this next phase of your insurance agency, you’ll want to make it error-free. After all, this is your lifelong dream!

How Do I Sell My Insurance Agency?

First things first. It’s important to have a clear picture of the current state of your agency, including:

  • Corporate Documentation: Have current copies of your bylaws and shareholder agreements if applicable.  
  • Financial Documentation: Potential buyers will want to see a snapshot of your statements, tax returns, and P&L statements before diving in for a deeper look if the process gets a green light.
  • Legal Documentation: Sales and service contracts, carrier agreements, employee information, building lease, etc.

Presenting a concise snapshot of your business to potential buyers will not only help attract more of them, it will also help you answer this question: How much can I sell my insurance agency for?

Your potential buyers will perform their own due diligence before the deal is done, but you can smooth the path and have a quicker resolution by doing a little preparation beforehand.

How Much is My Insurance Agency Worth?

When it is time to sell your agency, you need to know the book value and who you can depend on for strategic input. It is not always easy to accurately estimate how much your agency is worth, but you do not need to do that alone. There are people who can – and should – provide advice and counsel.

  • CPA: Your CPA can help you gather the necessary accounting and tax documents, plus offer guidance on the correct purchase price and final deal terms.
  • Attorney: As always, you’ll need an attorney with experience in mergers and acquisitions to help you wade through the legal documents, negotiate terms and review final deal terms.
  • Investment Banker: It’s not an absolute must and this service doesn’t come cheap, but an investment banker is a good person to help you determine the worth of your agency and review potential buyers.

 Confie can help estimate the value of your business. Our evaluations are confidential, quick, and easy.

Businessmen shaking hands after successful acquisition

Who Will Buy My Insurance Agency?

You may be surprised at the amount of interest you’ll see when you decide to sell your insurance agency. Many companies are actively acquiring insurance agencies just like yours. Of course, your hard work and careful planning made this business what it is and you may be concerned that a new owner carries on your commitment to your community.  

In this case, you’ll want to find a buyer that brings a reputation for excellent customer service and care to the table. For many people who’ve spent years building good community relationships, finding a buyer with a similar philosophy is of utmost importance. You may also be concerned about your employees – will a new owner keep them?

If these things are important to you when you decide to sell your insurance agency, you’ll want to do some research on potential buyers to see how they’ve handled previous acquisitions.

Reassure Employees and Customers

When selling your insurance agency, you want to keep the planning and sales process as confidential as possible. This is important because customers can get anxious and will consider moving their policy somewhere else. 

Keep your employees in the loop as much as possible. Keep your door open and be transparent. Reassure employees and customers that you have their welfare in mind.

We Can Help You Sell Your Independent Insurance Agency

Confie is here to advise you on all the important considerations in selling your agency. We have a seasoned team who knows the ins and outs of selling an independent agency. We offer you confidentiality, quick and easy evaluation.

It is never too early to set a plan.

Confie is here to help give you advice. Send us an email at or visit us online.