The average age of agency owners remains above 50 years old. Although many of them may want to work late in life, many are also nearing retirement—and are ready to sell.
This provides an exceptional opportunity for professionals looking to grow through acquisition. But as a buyer, you can and should be selective.
Look for a business that is compatible with your own—or, if you are new to ownership, one whose culture matches your working style. In addition, seek out an agency with a strong staff and a high customer retention rate.
Here are some additional issues to consider:
The two success factors in business transitions are thinking through a long-term growth strategy and paying attention to detail. Deploying both practices will help make sure you buy an appropriate agency for the right price and manage the transition in a way that helps you retain clients from the book of business you are purchasing.
As a bank that specializes in supporting small and midsize business growth, Live Oak Bank has learned a lot over the years about what makes acquisitions work—and what doesn’t. To determine how much debt your agency can reasonably support, we will evaluate the cash flow of your business. Our insurance industry knowledge and lending expertise will help you avoid costly mistakes and unnecessary complications.
Whether you’re an experienced agency buyer or ready to become an owner for the first time, we’ll guide you through the loan process. We’ve financed over 2,300 small business acquisitions at Live Oak Bank, so you can rest assured you’re in good hands.
Download Live Oak Bank’s full guide to agency acquisitions!
