Broker vs. DIY
That’s one way a broker who specializes in insurance agencies adds value. Had the seller tried to do it himself, he likely would have spent a lot of time and effort courting buyers – only to come away disappointed, and without much of a road map towards achieving his goals.
“Often you hear about people saying “I sold it myself,” and so they think they saved the commission,” says Persky. “That’s true to a certain extent, but it discounts the value that we can unlock. In 9 cases out of 10, the broker more than pays for their fee in value added to the sales price,” he estimates.
Menzer likens the agency sales brokering process to the process of insurance brokering. Yes, there is a commission for their efforts. But good intermediaries can consistently earn that commission back for their clients, many times over, in securing a faster and more efficient sales process, and also in helping agency principals secure a higher price for their business than they otherwise would. Just as your clients benefit from the value that a qualified, experienced and knowledgeable insurance professional brings to the table, and just as they need your help, you can also benefit from the services of a qualified and experienced business broker with specific expertise in the transfer of agencies.
To find a list of those who Specialize in Insurance Agencies, go to Agency Acquisition Brokers
Looking to start an Agency? Get detailed information by reading our Guide to Starting an Insurance Agency
