- 1,481
I do agree with RobotMcCarthyism.
Someone will swoop in if you don't move fast on it.
Someone will swoop in if you don't move fast on it.
Buying an Insurance Agency - Please Advise!
- Thread starter KIA
- Start date
- Thread starter
- #12
There are *supposedly* 2 other offers at around 2.5x. I was willing to have the owner stay on and work as a CSR but she wants an absurd salary. Basically what she was paying herself (wants to have her cake and eat it too).
Since my office is ~40 minutes away from the prospect, and the other buyers are in the same town, my biggest concern is retention. If she was willing to stay on and work (I would even let her work from home), that would have eased my retention concerns. Since she wants an absurd salary, that no longer works for me.
As such, unfortunate as it is, I don't think I'll be going through with the deal. I won't be able to be competitive price wise, and I don't think rolling over into my office will be ideal for retention. The only way to do this then, would be with a VERY solid retention clause.
Since my office is ~40 minutes away from the prospect, and the other buyers are in the same town, my biggest concern is retention. If she was willing to stay on and work (I would even let her work from home), that would have eased my retention concerns. Since she wants an absurd salary, that no longer works for me.
As such, unfortunate as it is, I don't think I'll be going through with the deal. I won't be able to be competitive price wise, and I don't think rolling over into my office will be ideal for retention. The only way to do this then, would be with a VERY solid retention clause.
- 1,581
I lost out on purchasing an agency before too. The seller had completely unrealistic expectations about what her book was worth. She claimed she had offers way better then mine so I walked. She ended up selling it to somebody else for what I offered. Do not give up on it. The lady I was attempting to negotiate with was a complete *** & I think had I of been better about explaining the transition in general..I may have got it.
- 1,481
Good Point here Ins1822, I think we often let our emotions get involved in this process like small business entrepreneurs often do. If we chill out a bit and see the sell through to the end, and sell it a bit, We might get the book after all. So Many agents think it is worth X and when it is all said and done they get y.
- Thread starter
- #15
Well, as I mentioned she supposedly has two offers in the 2.5x range. Both without retention clauses - as they are local to her.
I've been speaking with her carriers, and her book really is quite good/profitable.
I think I'll still make an offer, but it's going to come with a full retention clause, and therefore no/very little risk to me.
Will keep y'all posted.
I've been speaking with her carriers, and her book really is quite good/profitable.
I think I'll still make an offer, but it's going to come with a full retention clause, and therefore no/very little risk to me.
Will keep y'all posted.
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