Are you thinking about selling your insurance agency? Maybe it is on the horizon, or maybe it is time to plan for your retirement. There are so many things to consider when the time is right.
Many sellers can sell insurance policies, but selling your agency is an entirely different story. You want to protect your legacy and you want to make your retirement goals. You do not want to make any mistakes; this is your lifelong dream.
Here are some tips to consider:
Be Sure You Want to Sell Your Agency
It’s going to relieve you of the responsibility that comes with owning a business. Selling your agency will open up a whole new life to spend time with family, retire, play golf, fish, go on vacation—or whatever you have been dreaming about for the future.
All that sounds good. Nevertheless, it is important to know if you really want to sell your business. Whatever the reasons, be very clear of your motive. You do not want to make a decision that you regret down the road.
What Do You Need to Know First About Selling Your Agency?
When it is time to sell your agency, you need to know the book value and who you can depend on for good advice. It is not always easy to accurately estimate the value of your business, but you do not need to do that alone. Confie can help estimate the value of your business. Our evaluations are confidential, quick, and easy.
Pay Attention to the Current Federal and Local Economy
Legislation is looming to nearly double capital gains tax. Deciding to sell before changes in the capital gains tax will make a big difference in your retirement income and maybe your retirement date.
There are also many other factors affecting the economy that might affect your sale price. Consider the current rent for buildings, cost of goods and services, talent to employ, and most importantly, the adverse effect COVID is playing in the economy.
Whom Should You Sell Your Agency to?
Deciding whom to sell your agency to is a big decision. Should it be to an employee or a friend? But, will that affect your ability to name a fair price and retain your legacy? Should you sell to a local agency or a large agency vs. a publicly-traded national broker?
Most importantly, look for compatibility in your buyer. You want your buyers to match your business expectations and the philosophy you have built through the years. You want your current customers to receive the same service they have always received from you; after all, you have worked years on building those customer relations.
You also might want to ensure your current employees are kept on to preserve the legacy of your business.
You must consider these things when you are looking for a buyer. Finding the right buyer, well that is really, what it is all about.
Keep It Confidential
When selling your insurance agency you want to keep the planning and sales process confidential. This is important because customers can get anxious and will consider moving their policy somewhere else. In addition, your competitors might lure customers away from you before the sale even takes place. All that can ruin the value of your agency.
It’s Personal and it’s Business
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 your agency. We offer you confidentiality, quick and easy evaluation.
It is never too early to set a plan.