Get a good CPA to help you calculate your agency’s EBITDA (Earnings Before Interest Taxes Depreciation and Amortization) if you don’t know it already. It is a great indicator of the state of your business and will help you set a realistic value for your agency.
In the past, decisions to sell or buy agencies were based on the commissions that the agency brought in. However, the current valuation method is much more accurate, since it also takes into account expenses by focusing on actual profits instead of just income.
Setting a realistic price will make your sales efforts more effective and help you complete your sale faster. Don’t cling to fantastic notions of the value of your company, and stick to the numbers.
With a good CPA and tax expert, and a solid plan, you can enjoy tax benefits when selling your insurance agency. In order to make the most of them, you need to start planning and laying the groundwork a few years before the sale actually takes place, so start now.
We believe that the way in which you built your business will attract a specific type of buyer. Learn more about our philosophy and how you can leverage it to increase your chances of selling for a good price.
It took a lot of blood, sweat, and tears to found and grow your agency. Make sure it survives and thrives without you by making sure processes and finances are in order, your staff is well trained and empowered, and the next generation of managers will make the right decisions.
Deciding to sell your insurance agency is a big step. What would you like to learn more about?
There are several factors at play when it comes to agency valuation. Our team is standing by to answer any questions you might have.
The logistics of who will take over your agency can be built in to your exit strategy. For example:
Potential Additional consideration can be given to an interested party who is prepared and ready to buy.
You've invested so much into your insurance agency. We can help you determine your next steps when you make the decision to sell.
OAA was born out of the desire to help independent agents succeed.
If you want to start off your own agency, make it grow explosively, or sell an established agency, we have the experience, knowledge and skills to help you.
