Selling an insurance broking business

We see a trend emerging of activity in the sale of privately owned insurance brokers.

The most common reasons include :-

• no organic growth in the market coupled with substantially increased costs of doing business.
• directors of many insurance brokers are coming up for retirement. The next generation either do not have the money or enthusiasm to take over and run the business.

Buyer likely to try and negotiate staged or deferred payment

Typical ways in which a buyer may look to reduce the final purchase price if deferred payment becomes part of the deal are:

• the extent to which the seller will be locked into a future role in the business;
• economic downturn; and/or
• ways in which the buyer may try to manipulate deferred consideration based on profit levels.

If there is to be an earn out we are strong negotiators, know the trade off points to push and plug the gaps.

Regulatory issues when selling insurance brokerage

With a regulated business such as insurance, due diligence will be more detailed and expensive, especially with the common relationships insurance brokers have with self-employed representatives and agents and where there are commission and/or referral arrangements, again it might be harder to sell.

Specialist solicitors for selling insurance broker business

Our experience in the specific issues means we focus quickly and cost effectively on the key issues. This saves time and money. Whilst this page is focused on selling privately owned insurance brokers we do work with people looking to buy insurance related businesses as well.

We are always happy to talk over any questions you may have and provide an initial scope on how you can go about selling or buying insurance brokers. Please get in touch on 020 7438 1060.