Selling Non-Standard P&C Book of Business & Agency Texas

[SmilingAgent]

I was hoping I could get some helpful information on selling A Non-Standard P&C Agency and book of business in Texas. Like how would one go about pricing their agency? Does the multiple of one to two times commission still hold true, & if so how to know what # is appropriate. Does one charge for their name? How to best find buyers? I have an agency I started 25 years ago, but due to failing health must sell.

[SmilingAgent]

Did I say something wrong.... It is hard to believe no one knows anything. I really would appreciate your assistance & wisdom.

[agencybuyer]

we would have interest in speaking with you. Our company is looking to expand in Texas and we are a cash buyer. Please call me at 913-669-8458.

[d's insurance store]

I'd make two calls first...one to my E&O Agency...because they're often a place where prospective buyers go to find out who might be interested in selling. When agency owner's get ready to sell, they often express those desires to the E&O Agent on renewal or mid term to ask about coverage tails.

My next call would be to the marketing reps of your two or three largest carriers. They generally have their ears tuned to the comings and goings of agency status, and they might have had an agency express a desire to purchase.

I'd then spend some time on a search engine to try and find a broker who deals with insurance agency sales and put out some feelers about valuations.

[SmilingAgent]

Thank you so much for your time and effort in sharing the above info. I will definitely give it a try.

[waves101]

You might want to contact an expert in the field of agency valuation. One I know of is Optimum Performance Solutions 813-835-7337. They are part of the National Alliance for Insurance Education & Research.

[AnMarieB]

When I was ready to sell my agencies in Texas back in 2006 I first contacted my attorney, then a broker, then when an acceptable offer came in, my accountant. The reason for the accountant, how each item is valued will have an impact on yours or the buyer's taxes (i.e. your brand name, goodwill, furniture and fixtures, and so on). All of that needs to be taken into consideration as you negotiate your sales price.

I required the broker keep the search for a buyer confidential as I had employees and didn't want the morale issue that can be created when an employee is unsure of their employer's future. The sale was not announced to anyone (other than my attorney, accountant, and E&O agent) until the deal was signed as this industry is just too small for anyone to keep a secret from anyone.

I required a cash buyer as I've heard too many nightmares from others that accepted payments. If you do though, just be ready to write a really big check to the IRS....

In the end, I obviously choose the buyer that best met my needs and price. The sale went great and I still talk to the buyer from time to time. I attribute the successful sale to my phenomenal attorney. He did a great job laying out exactly what was expected from everyone so there weren't any unexpected surprises.

Good luck on your search.

[AgencyBrokerage]

The key to maximizing the outcome is to seek a team of skilled advisors, prepare for the sale, discretely market the agency to the most qualified and probable buyers to create a competitive bidding, and then move forward diligently. We represent clients across the country in buying and selling independent agencies. Please let me know if we can be of assistance. I will be in Dallas in a few weeks as well for a few other meetings, and then again in Houston not too long after.

All the best of luck to you.