Preparing in advance—ideally over the course of a few years—will have a profound impact on the speed of the sale and the selling price.
You may not be thinking about selling your agency right now, but what about a few years down the road? To make the process as fast and headache-free as possible – and to ensure you receive the full value of your agency – it’s important to be prepared.
Don’t wait until you’re ready to sell – a proper evaluation of your agency could take months. Implementing steps to make your agency attractive to buyers may take even longer. Ideally, you should begin preparing your agency for sale at least three years ahead of time.
As Jeff Huff, Vice President of Strategic Projects at Smart Choice, says, “Whether you’re two years out or three years out, you’re in countdown mode.”
Ask yourself:
- Have you and your team optimized agency operations?
- Are your tools and technology an asset or a liability?
- Are you reviewing your book for excessive loss ratios?
- Does your financial record-keeping meet requirements?