Buy & sell / PRACTICAL GUIDE
How to buy an insurance agency
A successful acquisition starts with the right fit, a disciplined review, and a transition plan that puts clients first.
Define the agency you actually want to own
Decide whether you want a whole operating agency or a book of business. Set your preferred states, client mix, size, and level of owner involvement. Write down what your existing team can absorb and what would require new people or systems. A business that looks attractive on paper may still be the wrong operating fit.
Learn enough to decide whether to go deeper
Start with a non-confidential overview. Ask about the revenue mix, broad location, reason for sale, and transition expectations. Agree on confidentiality before requesting identifying information. Confirm who is authorized to speak for the seller, and keep a record of the information still to be verified.
Build your diligence team early
Have your attorney, accountant, and lender help define the review. Reconcile reported revenue to commission statements and financial records. Examine retention, carrier concentration, producer relationships, expenses, and the work the owner does. Ask carriers and contractual partners about approvals and the treatment of appointments, rather than assuming relationships transfer with a purchase.
Plan the first 100 days before you close
Assign responsibility for client communication, renewal service, staff onboarding, systems migration, and carrier coordination. Identify which changes can wait. Discuss how the seller will support introductions and how exceptions will be handled. Have your advisors document the agreed responsibilities and transaction conditions.
Your next steps
- Write a one-page acquisition profile.
- Separate written premium from agency revenue and earnings.
- Verify carrier and contractual transfer requirements.
- Build a client-service transition plan before committing.
General educational guidance. Confirm current requirements and terms with the relevant authorities, providers, and qualified advisors. Provider materials describe their own offerings; inclusion is not an endorsement.
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