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5 ways Insurance Agency Owners Can Make Money After a Sale

Updated: Jan 31



Buyers typically offer five ways to make money at the close of a sale and after the acquisition.


For insurance agency owners, this means… 


  1. Every sale can be structured differently based on your goals

  2. Each offer from a buyer will look different

  3. You have options regarding how you make money and which offer you wish to accept


Working with an advisor will increase your options for finding the buyer and deal structure that works best for you. 


  1. An advisor can identify the right offer structure based on your goals.

  2. Deliver multiple competitive buyer offers and compare the pros and cons of each.

  3. Negotiate on your behalf to ensure the deal meets your financial goals. 


There are many nuances to receiving offers for your business and structuring a deal. Trying to meet with buyers and structuring a deal on your own can result in fewer options and lower-value offers. 


In 2023, clients who received previous offers on their own or with another advisor-sold their business for 30%+ more with Legacy Advisors. Read below.


Increasing deal value by 30%+ with Legacy Advisors
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Typically, there are 5 components to a deal, which means there are 5 different ways you can make money from a sale. 


  1. Cash: Typically a majority of the upfront deal value, paid to you at close 

  2. Stock: The option to own equity typically in the buyer’s business, dependent on the upfront deal value 

  3. Ongoing salary: An agreed-upon go-forward compensation for you in the form of a salary if you stay on board 

  4. A future earn-out: An opportunity for you to earn future performance-based compensation

  5. Commissions: The ability to continue to earn commissions from sales post close if you stay on board


An advisor will make sure the right levers are pulled to generate the best and highest offers.  


 

Legacy Advisors is the only M&A advisor dedicated solely to sell-side insurance deals. 


With a team comprised of successful ex-agency owners and experienced private equity investors, Legacy Advisors was founded on the mission of helping agency owners make more confident decisions in their journey to a sale.


Most clients begin with an introductory call to ask general questions, discuss market trends, and learn more about our process. If it makes sense for both parties, we then offer business valuations at no charge.




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