Exit Planning Tips
Selling a Health Insurance Agency
Selling a health insurance agency doesn't happen overnight. It takes a deliberate process to get top dollar for your company.
Cutting corners never pays off, especially in the sale of a health insurance agency.
Most health insurance agencies are good business opportunities, a fact that is not going unnoticed by today's discerning buyers.
Current Market Conditions
No one plans to sell a health insurance agency in a down economy. So far, government intervention and promises that the economy is slowly recovering haven't been enough to alleviate many entrepreneur's fears. However, many business sellers don't realize that a full economic rebound can have devastating consequences, particularly if sellers who have waited to list their businesses suddenly create a glut in the business-for-sale marketplace. The simple truth is that the economy shouldn't dictate whether or not now is the right time to sell a health insurance agency. Your individual circumstances and personal goals are more influential factors in determining when it's time to put your business on the market.
Working with Accountants
Professional accountants lend credibility to the financial preparation of a health insurance agency sale. Most health insurance agency have significant tax consequences requiring the input of a qualified accountant. You may also want your accountant to assist in the preparation of professional financials to present to serious buyers. In certain instances, it may be appropriate to ask your accountant to vet the financials of prospective buyers, run credit checks or even structure the terms of a seller-financed deal.
Dealing with Buyers
It's a common scenario: in an effort to perform a thorough due diligence process, buyers flood health insurance agency sellers with questions and requests, often to the point of becoming a nuisance. The questions health insurance agency ask during due diligence are designed to alleviate their concerns about the business and should be promptly addressed by the seller. Avoid answering buyer concerns with vague generalities. Instead, be as specific as possible, even if it means doing additional research before offering a response. If due diligence drags on too long, your broker may need to intervene.
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