Selling a Business Advice
Selling an Insurance Agency
Most businesses are susceptible to economic conditions and insurance agencies are no exception. But in some cases, a down economy can actually improve saleability. All it takes is a strategy to identify solid prospects and convert them to buyers.
Business buyers are a timid lot, even more so now that they are facing an uncertain economic landscape.
There is no simple way to sell a business. But the most prepared insurance agency sellers are achieving fair market value and more for their companies through persistence and the application of sound selling techniques.
How to Skillfully Address Buyer Concerns
Buyers can present challenges, especially during the due diligence stage. The questions insurance agency ask during due diligence are designed to alleviate their concerns about the business and should be promptly addressed by the seller. To protect yourself, don't offer an answer until you are sure the information you are providing is 100% accurate. If due diligence drags on too long, your broker may need to intervene.
Current Market Conditions
At first glance, today's market would seem to be a hostile place for insurance agency sellers. 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. So what's our point? The economy isn't the most important factor in the sale of your business. Instead, you should be focusing on making your insurance agency as attractive as possible so to buyers right now.
Professional Appraisals
There is no substitute for a qualified appraisal in the sale of your insurance agency. By hiring an appraiser to conduct a thorough appraisal of tangible and non-tangible assets prior to listing, you get a measure of the true worth of your business. Although the appraised value of your business may not be the same as the sales price, you gain valuable insight that can be used to your advantage during negotiations. If you're disappointed with the appraiser's estimate of your company's worth, you have the option of seeking a second opinion. However, it's more often the case that you will need to adjust your expectations of your business's value to buyers.
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