Question 1

How long does it take to sell an insurance agency?

Accepted Answer

The typical timeline for selling an insurance agency is 6-12 months from initial preparation to closing. This includes 2-4 months for preparation, 1-3 months for marketing and buyer engagement, 1-2 months for due diligence, and 1-2 months for final closing. The actual timeline can vary based on your agency's complexity, market conditions, and buyer type.

Question 2

What is my insurance agency worth?

Accepted Answer

Insurance agency valuations typically range from 6x to 12x EBITDA, with premium agencies commanding multiples at the higher end. Factors affecting valuation include revenue quality, client retention rates, organic growth, operational efficiency, producer quality, and market position. We provide confidential valuation assessments to help you understand your agency's current market value.

Question 3

How do you maintain confidentiality during the sale process?

Accepted Answer

Confidentiality is paramount throughout the process. We use blind profiles for initial buyer outreach, require signed NDAs before sharing detailed information, carefully control information flow and timing, and only approach qualified, serious buyers. Your agency's identity is protected until you approve disclosure to specific parties.

Question 4

What types of buyers are in the market?

Accepted Answer

The insurance M&A market includes several buyer types: strategic buyers (national and regional brokers) who often pay premium multiples, private equity-backed platforms offering equity rollover opportunities, independent agencies pursuing growth, and out-of-market buyers seeking geographic expansion. Each buyer type offers different advantages, and we help you identify the best fit for your goals.

Question 5

Will I need to stay involved after the sale?

Accepted Answer

Most transactions include a transition period of 6-24 months where the seller remains involved to ensure smooth client and employee transitions. The specific terms, including your role, compensation, and duration, are negotiated as part of the transaction. Some sellers choose to stay on longer term, while others prefer shorter transitions.

Question 6

What is an earnout and how does it work?

Accepted Answer

An earnout is a portion of the purchase price that's contingent on the agency achieving certain performance metrics after closing, typically measured over 2-3 years. Common metrics include revenue retention, EBITDA targets, or organic growth. Earnouts allow buyers to reduce risk while sellers can participate in continued agency success. We negotiate earnout terms to ensure they're achievable and fair.

Sell Your Insurance Agency with Confidence

Why Partner with Ascend Capital Advisors

Maximum Valuation

Confidential Process

Extensive Buyer Network

Expert Guidance

Preparing Your Agency for Sale

What to Expect

Frequently Asked Questions

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