If selling your insurance agency is on the horizon (anytime between now and the end of 2027), it’s past time for you to scrutinize your financial statements. It will be virtually impossible for you to secure a robust offer for your business without clear, professionally generated statements stretching back for several years.
The Common Pitfall: Being Too Busy
We understand that running an independent insurance agency is a lot of work. It’s easy to get caught up in the day-to-day small fires and lose sight of the big picture. However, owners who stop keeping a sharp eye on their financial statements will find that this task snowballs out of control rapidly, turning into an obstacle to making any significant moves regarding mergers and acquisitions.
Why It Matters
Springtree Group offers in-house financing for qualified buyers, allowing them to make competitive offers on insurance agencies. As a result, our buyers don’t have to settle by purchasing agencies that are less than stellar investments. They want to see proper financial statements. Concrete numbers resulting from comparing financial statements year on year are essential.
Any savvy, qualified buyer will expect this. If you happen to encounter an interested party who does not insist on seeing your financials, cease dealing with them on the spot.
What You Must Do
Your skilled accountant or experienced CPA should create monthly financial statements for your business. Quarterly statements will suffice in some cases, but this approach makes it difficult to catch issues in time. When your ship is off course, you must correct your direction immediately. Monthly statements are, therefore, the most effective setup.
The Goal
When you sit down with a potential buyer, being able to present monthly, professionally prepared, meticulously organized financials for inspection does more than prove your company’s fiscal status; it proves that you are a committed owner who tends to the details.
When the buyer investigates your operations further and discovers a streamlined workflow, happy staff, happy clients, and your great working relationship with your insurance companies, your agency will be the ideal investment.
The Takeaway
Springtree Group’s team has decades of experience in the insurance M&A space. We have remained dedicated to connecting funded, qualified buyers with healthy investment opportunities in their desired areas. To that end, we offer extensive advice for agency owners who want to prepare their agencies for sale.
When you are within two years of the quarter during which you plan on selling your insurance agency, it’s time to contact Springtree Group. We will guide you as you prepare to secure top dollar offers for the business into which you have invested many years of your life. We know you deserve to secure an agreement that sets you up to retire, change careers, or move to another region.
Our buyers will be waiting for the opportunity to make you just such an offer. Your goal is to be fully prepared to make it happen.
