By: Don Turner, President – Newins Insurance Agency Holdings, LLC
As an insurance agency owner, assessing when and how to exit or sell your agency can sometimes be a daunting task. Newins takes the sting out of the acquisition process and makes the selling of your insurance agency confidential, straightforward and transparent. Here is how we do it, and why we are a good partner.
Quick and Fair Valuation for Your Insurance Agency
In the initial phases of considering to sell your agency it is not uncommon to simply want to test the water and see if the valuation would be worth it. Many sellers get worried that the amount of information they would need to produce for the valuation/purchase price will be a significant burden and time killer. Not with us, we simply need the following:
- Twelve Month Net Written Premium by carrier
- Commission by carrier
- Lease information
- Estimated Loss Ratios
That’s it. We agree that an elongated process to simply get a purchase price is outdated and has no part in today’s business environment. After the initial data points are gathered we produce a purchase price or a range, which allows the seller to determine if it makes sense to continue. Once we receive the data, we will turn the purchase price around to you in five working days. Newins will present the valuation to you in the form of a non-binding Letter of Intent.
How Does the Sale Process Work?
After both parties accept the Letter of Intent, we move into a more thorough diligence process and transition from the Letter of Intent to the Asset Purchase Agreement (the selling contract) which formalizes the details of the acquisition.
We are cash buyers. Huge advantage for the seller. We do not believe that “earn out” scenarios work or are fair to either party.
Clearly the valuation/purchase price is the critical piece of the puzzle, however it is not the only piece. What about the staff? In short, we hire them, all of them. We need this team and understand the value of a friendly and familiar face the customers recognize as the agency transitions to Newins as the new owner.
Beginning on the date we close, our acquisition team will be present in the retail stores for the next eight weeks, managing the business and sitting side by side with our new staff working with them on the transition. We fully embrace our new team members, and engage with them on training and licensing issues if needed.
The Newins Difference
As experienced buyers (acquisitions ranging from single store operators to retail agencies with 15 or more locations), our team brings a no pressure, professional culture to the buying process. We understand the soft skills associated with an acquisition. We have seen it all. In our experience, we know that selling your insurance agency is a significant step. Our approach provides you a platform to get a purchase price with little business interruption, and allows you to control the pacing of the process after.
The center of our growth has come from acquiring agencies, we are motivated buyers, and well-funded. We have a strong track record of getting deals done. We look forward to hearing from you.