5 Ways to Make Money When You Sell Your Insurance Agency

When you sell your insurance agency, the payout isn’t always just a lump sum. In fact, most deals include multiple ways to make money — both at the time of sale and after the acquisition.

Understanding these options can make a major difference in your financial outcome — and how you structure your future.

The Truth: Every Offer Is Different

Buyers structure deals in different ways, and no two offers are the same.

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

   
   

With the right advisor, you’ll be able to evaluate every component of a deal — and choose the structure that works best for your personal and financial goals.

The 5 Ways You Can Make Money in a Deal

1. Cash at Close

The upfront payment you receive at closing — usually the largest portion of the deal.

2. Stock or Equity

The option to own equity in the buyer’s company or roll-up group, dependent on the upfront deal value. This can grow in value over time — or carry risk. (Read more about equity deals →)

3.Ongoing Salary

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

4. Earn-Out

An opportunity for you to earn future performance-based compensation. (What you need to know about earn-outs →)

5. Commission Continuation

The ability to keep earning commissions on business you continue to generate post-sale if you stay on board.

Get the Right Mix — with the Right Buyer

The most successful sellers don’t just take the first offer. They understand which levers matter most to them — and negotiate for it.

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

A strong advisor ensures:

• You’re not leaving value on the table

• You’re choosing a structure that aligns with your lifestyle

• You’re set up for long-term success — not short-term regrets

Working with an M&A advisor gives you more than just access to buyers — it gives you leverage.

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. 

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.