If you’ve spent years building your insurance agency, you already know—it’s more than a business. It’s your relationships, your reputation, your team, and your legacy. So when the time comes to sell, you’re not just crunching numbers. You’re making one of the biggest moves of your professional life.
I’ve seen firsthand how overwhelming it can feel. That’s why I put this together—to share the real-world things I wish more owners thought about before handing over the keys. Whether you’re serious about selling or just exploring the idea, here’s what I’d tell you over coffee.
1. Be Honest With Yourself About Why You Want Out
Let’s start here: What’s pushing you to sell?
Maybe you’re ready to retire. Maybe you’re burned out. Or maybe someone made you an offer that’s too good to ignore. There’s no wrong answer. But you should know it, own it, and be able to explain it—not just to buyers, but to yourself.
A clear “why” makes everything else easier. It helps shape your deal, your role post-sale (if any), and how you’ll feel once the ink is dry.
2. Understand What Buyers Actually Value
Everyone wants to know: “What’s my agency worth?”
It’s not just about top-line revenue. Savvy buyers are looking at EBITDA—basically, how profitable you are once you strip out fluff. But even that’s just the beginning.
Here’s what else they’ll dig into:
- Are your clients sticking around?
- Does your staff know what they’re doing—and plan to stay?
- Are your systems a mess or dialed in?
- Is your growth flat or trending up?
A clean, efficient, stable agency with happy clients? That’s gold. If you’re running lean and organized, you’ll be in a great position to negotiate.
3. Get Your House in Order (Yes, All of It)
This one’s not fun, but it matters. Buyers want to walk into something that makes sense. So get your files in shape.
That means:
- 3+ years of financials (accurate and reconciled)
- Updated corporate docs
- Clear contracts with employees, clients, and vendors
- Active licenses and compliance in check
If things look sloppy, buyers get nervous—and that can lead to lower offers or longer timelines.
4. The Letter of Intent Isn’t a Done Deal
That first LOI feels exciting. But think of it like dating—it’s a commitment to explore, not to marry.
Once that’s signed, the real due diligence begins. Expect questions. Lots of them. About your numbers, your team, your book of business. If anything feels off, the buyer might walk—or renegotiate.
Your job here is to be transparent, responsive, and organized. You don’t need to be perfect. But you do need to be ready.
5. Culture Fit > Biggest Check
This one’s personal: don’t chase the highest offer without looking at who it’s coming from.
Ask yourself:
- Will they take care of my people?
- Will they treat my clients right?
- Will I be proud to see my name on the door (even if I’m gone)?
You worked too hard to see your agency gutted by the wrong buyer. Sometimes the best deal is the one that feels right—not just the one with the most zeros.
6. Sell on Your Terms, Not in a Panic
It’s tempting to wait until you’re “done.” But the best time to sell is when you’re still in control—when your numbers look good, your team is stable, and your business is running smoothly.
If you wait until you’re burned out or forced to sell, you lose leverage. Plan ahead. That gives you options, not ultimatums.
7. Don’t Leave Your People Guessing
Your team and clients deserve a heads-up. This isn’t just a business decision—it affects their day-to-day lives.
Have a plan for communicating the transition. Introduce the new leadership. Answer questions honestly. If you can stick around for a few months to help, that’s even better.
A smooth handoff protects your relationships and your reputation.
8. Bring in the Right Pros
You don’t need to do this alone. In fact, you shouldn’t.
Find a CPA who knows deals like this. Get a lawyer who’s done agency sales before. Maybe even work with a broker who understands the insurance world. They’ll catch things you won’t—and they’ll save you from expensive mistakes.
Yeah, it costs money. But the peace of mind is worth it.
Final Thoughts: What to Know Before Selling Your Insurance Agency
Selling your agency is a huge move. When you’re weighing what to know before selling your insurance agency, it’s not just about valuations and paperwork—it’s about preserving your legacy. You’ve invested years into building something meaningful, and you deserve to exit on your own terms.
So take your time. Ask the tough questions. And lean on people who’ve been there.
