Purchasing an Existing P&C Agency

[superteke]

@ Bertolinoins
We have been friends since teenagers and have worked together for years with the financial services end of the business. He has a few other business interests that are occupying his time and that is why he is looking to release this agency. He has someone else that wants to purchase it but would rather have me purchase it. That is why he will get me contracts with any carrier if I need his help. I will be very careful with this one. The terms will have to be right and I will not be making any hasty decisions in regards to this matter. Thanks for the input.

 

[Josh]

@ Bertolinoins
We have been friends since teenagers and have worked together for years with the financial services end of the business. He has a few other business interests that are occupying his time and that is why he is looking to release this agency. He has someone else that wants to purchase it but would rather have me purchase it. That is why he will get me contracts with any carrier if I need his help. I will be very careful with this one. The terms will have to be right and I will not be making any hasty decisions in regards to this matter. Thanks for the input.

Ever had to sell an old car? You know, one that you wouldn't want to sell to a friend because you're not sure how it would hold up and you'd feel terrible if they paid you $1k for it and something happened? That might be your friends agency. Please don't mistake what I'm saying, just like the car, it might be perfectly fine and be wonderful and be well worth the money, but your friend might be selling something that could cause you more headache than good. I wouldn't try to lure him in with more money, it's entirely possible that the "other guy" is willing to pay much more than it's really worth and your friend and you both might be better if your friend gets the larger check and you find another agency or start from scratch. Again, maybe it's a fine book of business and the contracts are good and it would be well worth more than the asking price, but I wouldn't be too quick to buy into the thinking of "if someone else wants it, then it must be a good deal".