One of the really great things about owning an independent insurance agency is that you are Independent! You can and do make choices every day that affect your agency’s performance and success, both in the short-term and long-term. In other words, you have options and you’re exercising them, some more purposefully than others.
As we look forward to 2015, now’s a great time to examine some of the options you have concerning the future of your agency.
With the influx of capital from venture capital firms, the multiples have never been higher than they are today. So if you’re thinking about selling, now may be the perfect time to do so.
Several of my long-time clients and friends have opted to take this route over the last few years and it’s worked out very well. Some have sold, completed their earn-out period, taken the additional payout and then retired very happy! Others, including one I had lunch with the week before writing this article, sold out to one of the large brokerages, where he became a regional officer. As such, he’s in charge of finding other local agencies for his employer to acquire. With his expertise and their support, he’s free to go out and chase deals. And he loves it!
I’m sure there are other options you can explore, including a combination of the ones I’ve outlined. Even if you don’t expect to leave for another 10 years or more, the bottom line is that you will leave your agency eventually. That’s why it’s critical to start planning and laying out your options today.
Just don’t be like so many agency owners who procrastinate. Typically, they either wait too long and run out of options, or they leave behind a family with limited options because they never had a plan. Determine your options, make your choice and stick to it.
Your future great agency — and your exit from it — are a matter of choice not chance!
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