Agency Acquisition

CONRAD INSURANCE | CONRAD FINANCIAL

One of Conrad Insurance’s primary strategies for growth is insurance agency acquisitions. We are currently interested in small agencies for sale that have up to $1 million in revenue that are located in Pennsylvania. This is a growth initiative that is based on our resilient business platform.

All insurance agency acquisitions will be competitively organized to do the following:

  • Take into account the personal financial objectives of the insurance agents looking to sell
  • Create a future stream of earnings to sustain the lifestyle of the seller
  • Take into consideration any planning issues of the seller’s estate tax
  • Deliver financial security
  • Build a management program that features synergy between the management team of insurance agents looking to grow, partner or sell with our own management team with the definitive goal of taking care of the agency’s clients, business and staff

If you are thinking about selling your insurance agency, you have come to the right place. Here at Conrad Insurance, we will work with small agencies that are interested in making the rewarding conversion from being an agency owner. We will work with you in a manner that is completely confidential and offer you a price that meets your specific needs.

Why Sell Your Insurance Agency?

For the past few years, there are more and more insurance agencies for sale on the market. This is primarily due to the recent rise of the federal capital gains tax that went into effect in 2011. However, there are a number of additional factors that has more insurance agents looking to sell, such as:

  • Competitive influence of online lead aggregators, online writers and direct writers
  • The mindless response of conventionally dependable and faithful carriers who are beginning to sell openly to consumers as opposed to put their faith in their allotted agencies
  • Lack of ability to create a “brand” for marketing in contrast to bigger or more well-known agencies
  • Governing alterations that may affect what companies may be represented, what fees may or may not be charged, as well as the constant feasibility of provisional bonuses on which some agencies rely
  • Distress about having all of your eggs in the same basket if heavy dependence on any single carrier as well as a lack of control over the carrier amending commission plans
  • The inability to reach ten percent internal or organic growth every year, which leads to a decrease in business assets
  • The lack of capital for investing in other insurance agency acquisitions or booking business for insurance agents looking to grow their companies
  • The inability to concentrate on the sale of insurance, retain customers and grow business because of the consistent obligations of owning a business, such as accounting, legal matters and staffing

All of these things are major matters of concern for the insurance agency owners of today. There are many factor in play these days, including the varying consumer, the altering regulatory environment and the shifting carrier perceptions on the way that they sell and market, which has an effect on both captive as well as independent agents.

This means that there is not any capability for the insurance agency owners of today to just sit back and relax. The end result is simply a company that decreases in value each and every year, as opposed to a business that sustains and increases in value over time.

If you are the owner of an insurance agency that is not having any success with an annual revenue increase of at least ten percent or more, your agency is losing its value. If you are not able to follow a strategy for insurance agency acquisitions that allows you to add new locations, purchase the book of a producer or combine forces with the competition, then your agency is decreasing in value. If the overhead cost of your insurance agency is going up, but your revenue is either staying the same or going down, then your insurance agency is losing value.

As the owner of an insurance agency, it is incredibly important for you to understand that you have a company asset of some value. Just like owning stock shares, you will have the best possible price when that asset reaches its peak, not when it is on the decline.

Insurance agents looking to sell should not wait until it is too late. Many agency owners make the grave mistake of saying that they are going to wait until they get the commission revenue back up to a certain amount before they sell. However, in all reality, if you had the capability of keeping your revenue at that amount then it would already be there.

The solution to saving face and maintaining some revenue is to sell, partner or consider remote work agents. For insurance agents looking to partner, sell or grow their agencies and are interested in talking over acquisition, please contact Conrad Insurance for a confidential discussion.