Insurance Journal Forums

What is the best way to sell an agency?

Does anyone have any suggestions regarding selling services/business brokers?

You may want to check out my website, it will allow you to list your agency for sale as well as find a listing of business brokers that specialize in Insurance Agencies. I beleive these brokers charge anywhere about 4% to 5%, but it may vary as each broker may include different services. Often times, the value dependents on how much your net income is, I also have a list of appraisers on my site who can help you with this. Though many have used grow, 2x annual commissions seems to be towards the upper end, but mostly for higher quality agencies. Nevertheless, get a professional valuations as each agency is different. Best of luck to you.

Interview and Hire a professional firm that specializes in Insuracne agency acquisitions. Contact NJ IIA or PIA for referrals. Do not do this alone. The person that represents themself, has a fool for a client.

We are a NJ agency. We have purchased other agencies, and are interested in speaking to you. Please send an email.
Marty Lebson mlebson@capcoverage.com

Agency valuation can be tricky. One resource would be to contact lenders that specilize in lending for agency purchases. Since they are the ones that will be "cutting the check" their valuation could have a huge play in the finalization of any deal.
Regardless, it's a cash flow deal. Comissions paid, multiplied by 2 should be a starting point. Multiplier could be higher or lower depending on retention, growth, loss ratios, etc.

If your independant, contact your market rep. They should be able to sniff out a buyer quickly.