Business Exits By Industry
Selling a Car Insurance Agency
Nervous about selling your car insurance agency? You shouldn't be. Our tips will help you get the highest price for your car insurance agency, regardless of what's happening with the economy.
The business-for-sale market is just as frustrating for buyers as it is for sellers these days. Capital is scarce and many buyers simply can't afford the entry requirements for a car insurance agency.
It may require a little finesse, but if you're prepared to take the next step in your entrepreneurial career then it's time to brave the car insurance agency market and locate potential buyers ASAP.
Buyer Concessions
Most car insurance agency sellers realize they will need to offer concessions to sell their businesses. But for every concession you grant, there may be an opportunity to obtain a concession from the buyer. Although this scenario frequently plays out around seller financed deals, it's possible to push for a higher sales price or other form of compensation if you agree to mentor the buyer for a specified period of time. Asset exclusions, retained ownership shares and long-term contracts with another of the seller's companies can also be leveraged to extract concessions from buyers.
When Is the Right Time to Sell?
When is it the right time to sell your car insurance agency? If you're asking the question, now may be the time to put your business on the market. Some experts are telling car insurance agency sellers to put their plans on hold until the economy fully rebounds. We aren't nearly as pessimistic about the car insurance agency marketplace. With so many sellers holding back, there isn't a lot of inventory out there and you may be able to get a great price for your practice depending on how well you prepare the business and your ability to execute your sale strategy.
Advantages of Hiring a Broker
A good broker can offer several benefits to business sellers. Right out of the gate, brokers know how to help their clients properly prepare their businesses for a sale. More importantly, brokers have the ability to identify serious buyers and maintain confidentiality throughout the sale process. Although you will pay a fee for brokerage, it's generally worth it because the end result will be a higher sales prices and more favorable terms.
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