Buying a Commercial Book of Business
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Buying a Commercial Book of Business
I have been looking to purchase a Commercial P & C book of business for several years with little success. I have been on all of the online websites that offer businesses for sale almost on a daily, and nothing. Does anyone have any ideas? Any help would be appreciated.
buying business
Bersh,
First, you don't mention just what you intend to do with the business.
If you want to simply own an agency and are looking to add value to it, perhaps allow for the addition of an additional employee or two... maybe you'll find an agency for sale due to retirement, health or something.
Every small agency owner I know has an emotional tie to the clients in the agency. Nobody will want to simply "sell" the company cash flow to someone that has not proven themselves to have the client's best interest in mind.
Your post tells me that you are looking to pay (probably at a discount) for something that is more than just an asset. Why would I, or anyone, want to submit our clients to that situation?
You might try to take a different tack with your approach.
How about: " I'm looking to enhance the offerings of my agency. I'm quite interested in adding business to my commercial accounts department, and would enjoy talking to any agency owners in the greater LA area that are thinking about downsizing or retiring in the near future."
"Our staff pride themselves on delivering impecable, friendly service and will extend this courtesy to your clients as well". Please call Bersch...
It's just my two cents... you asked for it...
Happy Holidays!
Swymmer
First, you don't mention just what you intend to do with the business.
If you want to simply own an agency and are looking to add value to it, perhaps allow for the addition of an additional employee or two... maybe you'll find an agency for sale due to retirement, health or something.
Every small agency owner I know has an emotional tie to the clients in the agency. Nobody will want to simply "sell" the company cash flow to someone that has not proven themselves to have the client's best interest in mind.
Your post tells me that you are looking to pay (probably at a discount) for something that is more than just an asset. Why would I, or anyone, want to submit our clients to that situation?
You might try to take a different tack with your approach.
How about: " I'm looking to enhance the offerings of my agency. I'm quite interested in adding business to my commercial accounts department, and would enjoy talking to any agency owners in the greater LA area that are thinking about downsizing or retiring in the near future."
"Our staff pride themselves on delivering impecable, friendly service and will extend this courtesy to your clients as well". Please call Bersch...
It's just my two cents... you asked for it...
Happy Holidays!
Swymmer
I apologize for not going more in detail. I currently own an independent commerical book. The purpose of me purchasing an angency is to accomplish several things. 1) Increase cash flow, 2) add company appointments and 3) expand into other markets. Ideally, I would prefer the book to have more than $400,000 in annual premiums and be automated.
Do to the fact that the book may be located in other areas, I would prefer the client mix be spread across the state or even in other states.
Any help pointing me the right direction is appreciated.
Do to the fact that the book may be located in other areas, I would prefer the client mix be spread across the state or even in other states.
Any help pointing me the right direction is appreciated.
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scott
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Would you sell your agency using the websites you have utilized? Most agency owners wouldn't - most sell through personal contact/relationships.
If that is the way you would sell, wouldn't it make sense to buy using a similar methodology?
Who are the law firms in your area with a specialty in professional services/insurance firms? Who are the consultants and accountants serving agencies in the areas you are interested in? Get to know the players and they can lead you to likely targets.
Your approach in buying an agency must follow the same rules you apply to selling insurance - you must appeal to the self interest of the other party and provide value.
If that is the way you would sell, wouldn't it make sense to buy using a similar methodology?
Who are the law firms in your area with a specialty in professional services/insurance firms? Who are the consultants and accountants serving agencies in the areas you are interested in? Get to know the players and they can lead you to likely targets.
Your approach in buying an agency must follow the same rules you apply to selling insurance - you must appeal to the self interest of the other party and provide value.
Scott Simmonds, CPCU, ARM
Insurance Consultant
Insurance Consultant
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grandcanyonquotes
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Buying an Agency
I asked a similar question regarding buying a p/c book and was told to contact various independent agents in my city, put the word and feelers out. You can also contact the local independent insurance agents association and see if they have some ideas. The best bet might be to get on the phone and begin making inquiries with local agencies. http://www.phoenix-life-insurance.com
Being independent already, you should know that just because you buy a book of business doe NOT mean you will automatically pick up the companies they are with now. You will still have to go thru the appointment process. The book you buy will automatically be set up for non-renewal "agent no longer represents our company" situation. and then IF you qualify for the company, you may have to submit new applications and such (they may not allow you to roll the book with out re-underwriting it).
I would suggest (especially if you have been looking this long) that you start using your efforts to hiring (and training if need be) some good commercial producers to build your book and also that you start figuring out just what other niche markets you want to get in to and contact companies that deal in that area. Join groups for thoes niches and so on.
You may have missed the boat by waiting to buy the golden egg (who doesn't want an easy book of commercial) instead of building the nest for one ... jmho
Sundance
I would suggest (especially if you have been looking this long) that you start using your efforts to hiring (and training if need be) some good commercial producers to build your book and also that you start figuring out just what other niche markets you want to get in to and contact companies that deal in that area. Join groups for thoes niches and so on.
You may have missed the boat by waiting to buy the golden egg (who doesn't want an easy book of commercial) instead of building the nest for one ... jmho
Sundance