The 2020 pandemic shifted how American workers think about heading into the office. According to Forbes, 98% of workers want to work remotely at least some of the time, yet only 16% of companies are fully remote. That gap indicates that companies offering remote work options have a considerable edge with respect to hiring.
Consequently, Springtree Group has been encouraging buyers like you to consider acquiring remotely managed insurance agencies. If you are thinking of buying a virtual insurance agency, here are the top six things to know before you enter the fray.
Organize Your Finances
Failed funding is the single most common cause of a stalled or botched insurance agency sale. As a buyer, you will find that traditional lenders do not understand our sector and, consequently, will refuse to fund a proposed acquisition.
Springtree Group, with our contracted network of approved lenders, has a deep, comprehensive knowledge of private agencies. Because you are our client, we will work to ensure that you are financially prepared as part of your negotiations.
Identify Your Target Market
Before you can sufficiently narrow down your agency search criteria, it is essential that you identify which niche you wish to occupy. Auto, home, health, and commercial insurance are just a few market segments you will encounter in your research.
Should you require assistance determining which niche would best suit your unique circumstances, please reach out to Springtree Group.
Research the Insurance Industry in Your Target Niche
You have identified your target consumer base, so now it’s time to learn as much as you can about the industry landscape you’ll encounter. Knowledge is power, and you’ll find that this venture is no exception.
How to Identify a Strong Virtual Agency
Healthy agencies come in a wide range of sizes but have traits in common. Springtree Group will recommend agencies to you that have organized finances, excellent workflow dynamics, a strong book of business, and a stable history in relevant aspects. Just as we ensure that our clients like you are financially prepared for a purchase, we help our clients who are selling their agencies prepare for a frictionless hand-off.
How to Prepare Ahead of Your Planned Acquisition
Purchasing an insurance agency is a complex process that requires time to execute. By working with Springtree Group, you will have all of our highly experienced divisions at your back. We will help you ensure your finances are prepared and that you are fully informed on the day-to-day realities of purchasing a virtual agency.
Decide if You Need a Team of Employees
Depending on the size of the book of business you acquire and the number of agents who will stay on post-transition, you may need to hire additional employees. Fortunately, as a remote (virtual) agency, you can take your pick of workers from anywhere in the country or off-shore. Remember, the ratio of remote/virtual agencies to agents who wish to work remotely is massively skewed in your favor.
Consider Agencies to Buy
The single best way to find the ideal agencies for you is becoming a Springtree Group Registered Buyer. Each month, we publish our list of available agencies that are emailed to our Registered members first, which means you will have priority access.
To become a Registered Buyer (or a Standard Buyer) and gain access to the extensive services Springtree Group offers to our clients, please contact us today. There’s an agency waiting to have your name on it.
