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The
marketplace is dynamic. Buyers and sellers enter and exit the marketplace
all the time. Price is dependent on many things as each buyer has
different wants, needs and knowledge of the marketplace. Your business
is attractive to them for many of the following reasons
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Good
quality segment of business |
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Business
is an online business |
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In
the right location |
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The
right premium size for the buyer |
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Key
members of workforce |
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Good
to eliminate the competition! |
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There
are technology similarities |
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You
have the right supplier partners |
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Prestigious
buildings |
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Likewise
your business could be unattractive to them for same or other reasons.
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Presently the market price maybe anything from 0.75 to 2.0 times commission
income (current average 1.1 times commission income) for general business
(Commercial and personal lines) dependent how attractive your business
is to the buyer. |
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It
is a good idea to create your own personal benchmark. |
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Talk
to your accountant - you will probably have personal tax considerations |
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How
much do you need? - You may have borrowings etc |
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How
much will satisfy your present and future needs? |
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How
much do you ideally want? |
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How
quickly do you want to sell? |
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How
long ideally would you want to commit yourself to working for somebody
else through any transition period? |
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Look
at offers made recently to you if you have had any |
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What
would you ideally like to happen to the business? |
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You
may have to compromise or offers could be made to you that you had
never considered. Keep an open mind whilst in negotiation and use
your benchmark to see if you are satisfying your own personal needs
and values. At the end of the day you will get what you negotiate.
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When
communicating to potential buyers it is essential that we do not reveal
your identity until you authorise us to, so we establish an organisational
definition for you. Below are some suggestions, but please feel free
to establish your own identity. |
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A
broker based in a specific area wishing to sell a book of business. |
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A
traditional brokerage based in a specific area. |
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A
regional organisation looking to sell |
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Click
here and create your selling profile.
The
more information that is provided the better the match we can make
for you so please feel free to refine the details further (or less)
should you so wish. |
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Type
of business you are looking to sell - with business premises or without? |
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If
you have premises is it leasehold (length of lease) or freehold |
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Number
of staff? |
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Are
you looking for the existing workforce to remain? |
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Type
of business you are looking to sell - General, Commercial lines, Personal
lines, Life. Please include percentage splits. |
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Do
you have specific targeted segmented areas of business or schemes
which may be of interest to the buyer? |
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Main
agencies- composites, Lloyds or anything special? |
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Technology
- Any special quoting facilities? Online capabilities, websites etc. |
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Are
there any companies or businesses that you would prefer not to be
contacted? |
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When
talking to a potential buyer they may well ask for the following information: |
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The
last three years accounts |
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The
geographical spread of the business |
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Aged
debtors report |
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Creditors
report |
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Balances
of the client and office accounts |
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Renewal
retention rates by class |
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Details
of the top ten clients |
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Number
of risks split by class |
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Average
premium by class |
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Monthly
premium and income reports for the last twelve months |
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It
is normal that buyers request to see the last three years of fully
audited figures. It is useful to put together a brief outline of when
the business was founded and how the business has evolved, details
of any marketing activities, suppliers used, any special relationships
and any points you feel are of value and importance to a prospective
buyer. By having this information available can speed up the process.
I hope this information has been useful. |
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An
introduction to our buyers service is available free to all potential
insurance brokers or agents looking to sell part or all their business.
You
will need to pay for an Accountant and Solicitor should the deal
become formalised. |
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I
hope this information has been useful. Should you have any further
questions please do not hesitate to contact Anne Malone at Insuretec
Ltd. You can Email or telephone
on 01702 216978 or mobile 07789 935958.
We appreciate that office hours can often be difficult to discuss
such matters and welcome calls in the early evening and weekends |
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Register
with Insurance Broker Sellers |
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