How to Acquire Books of Business from an IA

[AgencyEquity]

Buying an agency can be challenging for a start-up, let alone any agency simply because there are more buyers than sellers. One option is to consider approaching larger agencies to see if they want to sell certain accounts, particularly those that may no longer meet their target market, such as accounts with commission revenues below a certain threshold. Acquiring these accounts can be a way to get your foot into many doors. Chances are, many of these accounts will not be rounded, and this can give you the opportunity to sell other lines of business and grow your agency.

Start by sending a letter to all the medium and larger agencies in your area. Introduce yourself and express your interest in acquiring accounts that no longer meet their target markets. You might make follow-up calls. Keep in mind that you will not likely see the smaller agencies do this. I would not recommend approaching them.