Business Sold

[North Texas Agent]

I was with an agency for over 13 years. Last week I was advised that the business was being sold to a larger agency. Being sold within 30 days. To say the least I am surprised as there was no indication of this in the works. I have not signed anything with the agency that I work at that is being sold and not sure if I want to go along with the new owner.
If you were in my place and elected to start fresh with a new agent would you reach out to the clients from the prior office?
Your feedback is appreciated!

 

[RickyG]

Do you retain ownership of your policies in event of sale?
If no, did you get leads or drive in the business yourself?
If leads were given, its dirty but nobody can stop you from going after those clients. In our state Non-Compete agreements are totally unenforceable now.

 

[GoPokes]

Are you vested with your commissions? The way I see it, is if they don't pay you your renewals, then they have no leverage to keep you from contacting your clients.

Now, if your spouse gets a license, she'd be crazy not to call them! Ha

 

[Allen Trent]

In our state Non-Compete agreements are totally unenforceable now

Non solicit/non piracy is completely different than non compete

 

[Al3x Lee]

I was with an agency for over 13 years. Last week I was advised that the business was being sold to a larger agency. Being sold within 30 days. To say the least I am surprised as there was no indication of this in the works. I have not signed anything with the agency that I work at that is being sold and not sure if I want to go along with the new owner.
If you were in my place and elected to start fresh with a new agent would you reach out to the clients from the prior office?
Your feedback is appreciated!

Same thing happened to me. I'm still with the bigger agency, its not so bad, but it makes me wonder with all these acquisitions, will there be any small agencies left in the future?

 

[Allen Trent]

Same thing happened to me. I'm still with the bigger agency, its not so bad, but it makes me wonder with all these acquisitions, will there be any small agencies left in the future?

Some mid size agency principals have told me they are not selling to private equity types that have been buying up agencies.

Their belief is that the private equity buyers have overpaid, now have bloated overhead of operations paying employees & retaining agency principals, carriers lowering commission rates. Their belief is all this will drive some that acquired to want to sell their previously acquired agencies. Especially at times when fixed interest rates are better & they can make better returns elsewhere than most insurance agencies net after expenses to operate/grow

 

[Markthebroker]

Same thing happened to me. I'm still with the bigger agency, its not so bad, but it makes me wonder with all these acquisitions, will there be any small agencies left in the future?

I assume that's what will happen with me when the CEO of my agency retires.

 

[Markthebroker]

In our state Non-Compete agreements are totally unenforceable now.

I am also in a state where Non-Competes are unenforceable. This was several years ago, but I did see where a large corporation made the lives of formers salespeople a living hell through legal entanglements if they violated the non compete.

So yes, unenforceable, but they can make your life hell if they are willing to leverage the resources.

 

[SUNus]

I get how big of a step selling a business is. It can feel like a huge chapter closing, but also an exciting new one opening.