When selling your insurance agency or brokerage firm, your best option is to use a professional intermediary, an M&A advisor who exclusively represents insurance distribution firms with significant sell-side advisory experience. An experienced advisor will have a track record, a history of successfully completing insurance agency and brokerage firm sales transactions. An M&A advisor should be able to provide you with references, past client transactions, early in the process before you sign a representation / consulting agreement. M&A advisors are skilled professionals that have the industry knowledge and experience to strategically manage and streamline the sales process successfully. They are experts through all stages of the sales process who negotiate transactions daily on behalf of their clients. The sales process has many intricacies and pitfalls to navigate. It’s an especially complicated, trying process for most owners who have little or no experience selling insurance agencies. From initial planning to a successful closing, a professional M&A advisor can strategically guide you through the sales process to ensure that you achieve your objectives and maximize the value of your insurance firm. They have the industry knowledge, experience, relationships and processes to deliver superior results.

Established in 2008, DCG Services National works with a professional team of experienced intermediaries, sell-side merger and acquisition (M&A) transaction advisors. We exclusively serve independent insurance agencies and brokerage firms throughout the United States. Our team represents all types of retail and wholesale insurance firms in the strategic marketing and sale of their insurance business. Our advisors have successfully completed hundreds of insurance agency / brokerage M&A transactions from coast to coast. We understand the opportunities and the obstacles that clients face and provide solutions to ensure that each client achieves their strategic objectives and reaches maximum profitability. Our team has a vast network of strategic buyers, including key, meaningful relationships with the most prolific investors within the insurance industry, both private equity-backed and privately owned national insurance brokerages. Our market knowledge, expertise and expansive network of industry relationships has provided us with the ability to seamlessly connect clients with qualified buyers / investors that are most ideal for their insurance firm. Our professional team of expert advisors will strategically guide you through the entire sales process to ensure that you achieve your objectives and maximize the value of your insurance firm. If you are considering or planning to sell your independent insurance agency or brokerage firm, now is the perfect time to explore options. Our entire team is dedicated to delivering exceptional value and results while providing the highest level of service.

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Agency Valuation

Front of hand pointing at graphic with word ValuationAn insurance industry M&A advisor has the market knowledge and expertise to analyze, estimate and propose recommendations to increase the value of your insurance firm. An advisor is able to uncover all the value that drives your agency to ensure that you receive maximum value. All insurance agencies and brokerage firms are unique. The larger the firm the higher the valuation multiple. There are many factors to consider, free cash flow, net profits, growth rates, type and quality of revenues, lines of business, carriers, retention rates, office and customer locations, etc. Currently, EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) multiples and revenue valuation multiples remain at record levels.

Protecting and Maintaining Confidentiality

Confidentiality is vitally important when selling your insurance firm. Over time, it can be extremely difficult for most business owners who are selling on their own to maintain. Professional intermediaries, M&A advisors, have strong sound processes in place to ensure that confidentiality is protected and maintained. They will not release any company identifying information to potential acquirers unless they are qualified and sign a strict confidentiality agreement (NDA). An advisor works in a discreet, confidential manner while managing the sales process. All meetings and phone calls between a potential buyer and seller will be coordinated and scheduled to protect your confidentiality and privacy. They understand the potential risk and possible harm that customers, employees, competitors or carriers could cause your business if confidentiality is breached before the time is right.

Strategic Marketing

An experienced advisor who exclusively represents insurance distribution firms should have an extensive database of various types of strategic buyers throughout the United States. Most often, an experienced advisor is able to help you receive multiple offers from the most ideal buyers without having to list your agency on the market. Often, agency owners who are selling on their own spend an immense amount of time and money working with a potential buyer that they know, only to find out their buyer is unable to secure financing or not willing to agree to the final terms. Many owners end up getting burned out of the process altogether. A professional intermediary will properly prepare your agency and create a professional marketing package. Advisors have relationships with a vast network of strategic buyers and have the knowledge and ability to find the most qualified buyers for your firm.

Chess board with knights from both sides facing each otherExpert Negotiators

Professional Intermediaries are expert negotiators. They strategically negotiate with buyers everyday and understand the strategies they employ. There is really no benefit for an agency owner to directly negotiate with buyers on their own. They are not familiar with or understand the typical terms in a contract, which can lead to bad decisions. Often an owner who is selling on their own will later regret signing an agreement for less money than they should have received or getting burned out during this process, delaying or derailing the sale of their agency. Based on your objectives an M&A advisor looks out for your interests to ensure that you receive maximum value with the best possible terms. Owners who are represented by an M&A advisor receive more money with better terms in less time.

Manage the Due Diligence Process

During this crucial step in the sales process the buyer has a specified period of time, generally a few weeks, to conduct a financial, operational and legal review of your firm. They will verify all the information that you previously provided and most often will request additional documents. An intermediary will fully prepare you for and manage this process. They will coordinate all document requests, schedule all meetings and advise throughout.

Prepare for Closing

An intermediary will make sure that all contracts, agreements and compliance documents are drafted, prepared and reviewed, ready to be signed by both buyer and seller. They will coordinate and work closely with the attorneys involved in the sale. An experienced intermediary is very detailed and thorough in making sure you are fully prepared to transfer your agency. There are many documents required and details to address for you to successfully transfer your agency. Take the pressure off yourself by using an experienced intermediary.

Additional Benefits

The Seller Can Focus on Running Their Agency

It is very important that your business does not suffer during the often lengthy sales process. A decline in revenues will affect the value of your agency and perhaps your buyer, as well. It is impossible for an owner who is selling on their own to really keep their focus and full attention on running their business. Selling an agency is a time consuming process with many obstacles and time sensitive schedules. With the help of an intermediary to sell your agency, you can focus on running your business. After all, you are an expert at running your agency. An intermediary is an expert at selling agencies.

Act as a Buffer

There are times that emotions can run high during the sales process, especially when negotiating. Selling your business is an emotional time. An advisor can keep the process running smoothly. They act as a buffer between you and a buyer. They are able to strategically communicate your interests in a professional productive manner that will produce the most positive result.

Help With Documents

From the initial valuation to the due diligence process on through to the closing, there are a significant amount of documents and operational reports that are required for you to sell your agency. An intermediary will help coordinate all document requests. They will make sure all the correct documents are gathered or drafted. They will organize and provide to the correct parties while keeping to schedule. The help of an intermediary is invaluable.

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