Key Points for Consideration when Selling Your Insurance Brokerage

When considering the sale of your insurance brokerage, there are several preliminary factors you must first review regarding your potential sale. What type of acquirer is most likely to be interested in purchasing your business and does your business cater for this demographic? What are the key strengths and weaknesses of your business and how can these be demonstrated or addressed? Can your business continue to operate without yourself at the helm as the primary decision maker? If you are satisfied that you and your insurance brokerage are capable of meeting these criteria, then you are in a strong position to seek a business sale.

Planning to sell
First and foremost, when contemplating placing your insurance brokerage onto the market you need to have a clear understanding of your timeframe for the sale. If you are in the pursuit of retirement and have a year in mind for this to be realised, your business needs to be prepared and equipped for the open market in advance. Insurance brokers can take upwards of 6 months to reach completion after the business sales process has commenced, with larger and more complex deals possessing the potential for further delays.

Finding Buyer
Another key point that often gets overlooked by successful business leaders is the difficulties and complexities experienced throughout a business sale. A perfect acquirer for your business is very rarely met through sheer coincidence, with most business sales exhausting an extensive list of potential buyers before settling on the realised purchaser. Further, protecting your best interests at the negotiating table without compromising the business sale is an artform of itself, one most business owners will only experience a handful of times, if not once in their lifetime.

Expert Advisors
Therefore, the appearance of financial advisors and business brokers within the insurance brokerage industry is highly prevalent, and for good reason. Advisors and brokers will have accumulated years of experience and expertise navigating insurance brokers through the sales process and, depending on their track record of success, helped business owners improve their return from the business. A business broker will act as the intermediary between yourself and any potential buyer, utilising their negotiating prowess attained over years of completing deals to protect your best interests whilst ensuring the deal does not fall through.

If the sale of your insurance broker is now under consideration and you would like to seek further guidance, please do not hesitate to get in contact with a member of the experienced Kings Professional team and they will be delighted to assist you.