- Why should I go through NESG Insurance Mergers & Acquisitions Brokerage rather than advertise and get a dozen of bidders?
This is a very good question. At first blush, it would seem to make a lot of sense to have an open bidding process whereby the largest dollar amount wins. However, the "perfect buyer" will not and does not choose to be a part of this party, because a qualified buyer that has the means and acquisition experience is not interested in investing the time, energy, and legal expenses to only have a one in ten chance of acquiring your agency. Secondly, we know firsthand who qualified, quality buyers are, and so we can save you a significant amount of time by helping you avoid tire-kickers. We will only present you with true agency buyers that match your terms, price, culture, and chemistry. Please keep in mind, all true agency buyers are different, though they all share one thing in common: They’ll avoid a bidding war at all costs.
- What is the value of working with NESG Insurance Mergers & Acquisitions Brokerage exclusively?
The value is that you will have a single individual as a point of reference. Mike will be creative, professional, and ethical in handling all aspects of the due diligence process. You can rest assured that Mike will deliver "on the promise" because he also knows firsthand who qualifies to buy. Based on his interface with you, he will successfully match you with a buyer who shares similar culture and chemistry. You'll quickly learn that it's not always about the money; it’s also about the people.
- What is a "true agency buyer"?
Someone who possess the following characteristics:
- Prior acquisition experience.
- Impeccable reputation with clients, carriers, and employees.
- Capability and willingness to make a decision in a timely manner.
- Liquidity to meet or exceed your asking price/terms in today’s market.
- Flexibility to accommodate the terms and conditions of potential ongoing employment.
- Shares a similar culture and chemistry.
- Who pays the brokerage fee?
The brokerage fee is paid by the acquiring firm. There is absolutely no cost to you, the seller.
- Why does the acquiring agency pay the brokerage fee?
The acquiring firm is happy to pay NESG Insurance Mergers & Acquisitions Brokerage upon closing because of the exclusivity gained by him through the deal. The buyer understands the value of exclusivity, because it enables him to avoid a bidding war.
- Will you assure my privacy?
Your privacy is absolutely assured. Your agency name, our mutual conversation, and any documents that are shared will not be disclosed to a third party without your written consent. Mike will present a mutual non-disclosure document which he and the perspective buyer will sign.
- What is the motivation for an owner to sell?
There are a number of reasons why an owner might contemplate the sale of an agency…
- Limited number of carriers
- The age of the owner(s)
- Additional competition
- Lower rates (which mean commissions)
- Increase in customer quotes
- General overall valuations decreasing
- The desire of the owner to do something different in life
- The need to have a perpetuation plan in place
- Will you match my agency's culture?
Corporate cultural match is very important not only to you, but your employees, carriers, and customers. If you desire to stay on as a full-time or part-time employee after the sale, these three components will help in making the sale successful: Money, terms, and culture match.
- Can I stay on after the sale?
Absolutely, the capacity is to be determined. More often than not, an owner stays on as a producer, agency manager, or consultant for a twelve to twenty-four month period, or longer. Employment details are customized to the particular needs of the buyer and seller.
- Will the new owner need all or most of the present employees?
In most cases, absolutely yes. Quality employees are absolutely essential in ensuring the continued success of a well-maintained agency. Continued success means higher retention, and high retention is very important to a buyer, particularly if he pays 100% cash at closing.
- Will you tell me what my agency is worth?
We will be happy to provide you with a realistic market valuation based on your financials, progress reports, and similar criteria from prior recent sales.
- How do I get started?
Simply call or email our president, Michael J. Wendling, for a discreet and confidential conversation.