Florida Insurance Agencies for Sale  

Florida Insurance Agencies for Sale


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Recent Sales  

Insurance Agency FAQs

Sellers
  • How do I prepare to sell my agency?
    Selling an insurance agency really comes down to having your paperwork in order. Understanding your policy mix, carrier relationships, loss ratios, retention numbers and net profit will enable you to get a more accurate valuation. 
  • What documents do I need to sell my agency?
    You will need twelve months of commission statements from each carrier, loss ratios and retention numbers for each carrier (where possible), a profit and loss statement, detailed payroll information, and a copy of your lease. During due diligence, the Buyer may ask for additional documentation.
  • How do I maintain confidentiality during the sale?
    The best way to maintain confidentiality during a sale is to use an agency broker. Your broker will be able to act as a middleman to recruit and qualify Buyers without revealing your agency information until non-disclosure statements are signed.
  • How long will the process take?
    Generally, if your agency is priced right and your loss and retention numbers are good, it will sell very quickly in the state of Florida. That means, it should be in contract in thirty days or less and close within 45-60 days of contract signing. The one exception to this is non-standard auto agencies. They can take longer (up to six months) to sell.
  • What expenses will I incur?
    The Seller usually pays the broker commission and a portion of the closing attorney's fees.
  • What are my responsibilities during the transition period? 
    The Seller is asked to assist the Buyer with filing the carrier appointment applications and the commission deposit forms. In addition, the Seller may be asked to participate in marketing activities that will inform the customers of the sale. Finally, the Seller is expected to spend two to four weeks assisting the Buyer in learning the processes and procedures of the agency.

 

 

Buyers
  • How do I find an agency for sale?
    In the competitive world of agency acquisitions, it makes sense to use the services of an agency broker. Many times, brokers are aware of agencies for sale that are never advertised on the open market.
  • How do I become licensed in Florida as a P&C agent?
    Contact the Florida Division of Insurance Agent and Agency Services for the most up-to-date requirements.
  • Where do I find financing for the sale?
    It is important to use a lender with experience in financing insurance agencies. Since these loans are considered "soft asset", meaning there is very little to sell at auction in the case of default, therefore many lenders will not provide funds for agency acquisitions. Speak with your agency broker to get in touch with the leading lenders in the industry.
  • What expenses should I expect?
    In addition to paying a portion of the closing attorney's fees, the Buyer may also incur costs for corporate registration, fictitious name registration, recording of any notes/liens and initial operating costs.