BUY AN EXISTING AGENCY
If you want to get ahead of the game, buying an insurance agency that is already in existance will give you the advantage of taking over a business that is already up and running.
By buying an insurance agency that is already operational, you’ll be able to choose the level of business activity you want to oversee, based on the size of the agency you buy. Allstate will provide you with various bonus and incentive opportunities depending on whether the agency you purchase has more or less than 750 Property & Casualty policies.
Is buying an existing Allstate agency right for you?
When you purchase an existing Allstate agency of greater than 750 Property & Casualty policies, you're considered an "outside buyer." You have the advantage of buying a business that’s already up and running.
There are several questions to think about when it comes to purchasing an existing book of business:
• Do I have sufficient liquid capital to invest in growing the business?
• What is the business environment in the area?
• What are the factors that may affect customer retention in the book of business?
• What are the agency’s financial results over the past three years?
• Is it operating efficiently?
• What is the value of the agency?
• Will the agency staff be retained after the purchase?
• What is their value? Are there any staffing issues?
• Will I be able to retain the existing location?
• What legal issues should be considered?
• How will the agency purchase be financed?
• What is the market opportunity to grow the business?
