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How To Sell Your Insurance Agency
With Sica | Fletcher
Sica | Fletcher has advised more than 400 agencies just like yours on how to sell your insurance agency, consistently ranking #1 on the S&P Global’s leaderboard of top-ranking insurance agencies. As the first and only boutique advisory firm to manage deals of $1B, we help businesses of every size earn the highest possible payouts.
Can You Sell Your Insurance Agency?
Let us tell you something no one else will: about 50% of insurance agencies that go to market are not in a position to sell. This reality doesn’t stop many M&A advisory firms from taking their retainer fees regardless.
Here at Sica | Fletcher, you can expect a transparent process with trusted partners. Here is just a sample of what we provide your agency during the deal process.
Valuation
Our valuation team at Sica | Fletcher handles the heavy lifting associated with your agency's valuation. We will determine your EBITDA based on information from several key indicators:
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The documentation you provide us
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The current insurance M&A market
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Carrier relations
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Agency/agency cash flow
In addition, we provide clients with live market data from other deals we advise on to contextualize your agency's valuation against others of a similar size (See example at right).
Market
The majority of M&A processes are run through an auction-esque process, which industry professionals describe as the “marketing phase.” Having an M&A advisor like Sica | Fletcher on your team means having an experienced partner with you to:
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Underwrite your deal (as opposed to just listing it)
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Build the best possible pitch deck for your agency
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Evaluate offers to determine the best offer
Due Diligence & Closing
The 2024 insurance M&A market is getting increasingly more complex, with equity playing a bigger role in transaction payouts than ever before.
Sica | Fletcher’s teams are well-versed in these negotiations, providing clients with:
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Document Preparation
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Regulatory & Compliance Reviews
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Identification of Conflict
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Data Room Management
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Final Negotiations
This puts our clients in the best possible position when it comes time to navigate difficult offers – or difficult buyers.
The Sica | Fletcher Difference
At any other M&A advisory firm, you will likely work with junior-level advisors who may not have a great wealth of personal experience, no matter the firm's reputation. At Sica | Fletcher, however, our founders - Mike Fletcher and Al Sica - touch on every deal we oversee, ensuring that you get expert-level advisory services to ensure the highest possible payout.
Your M&A Team
Running a deal process is a complicated operation that requires intense amounts of time, effort, and skill to secure the best possible earnout, but Sica | Fletcher streamlines that process by assigning the right professionals in your team. The three most important professionals your team employs should include at least one of each:
Tax Specialist
The individual who helps calculate the kind of payout you need to achieve your goals post-closing.
M&A Advisor
The person in charge of managing the deal process, from valuation to negotiation. We advise clients on how best to value and market their agencies and evaluate client offers.
M&A Attorney
The person who reviews all the details of client offers, advising on what is and is not negotiable to achieve a higher payout.
Some insurance agencies may require additional team members (e.g., estate planners, exit planners, financial advisors), depending on the size and makeup of the agency. Sica | Fletcher works directly with clients to determine what your team requires and can refer you to the best in the business, assuming we don't already have them in-house.
An Experienced Advisor Means a Bigger Payout
Since our founding in 2014, Sica | Fletcher has advised on over 400 deals – and monitored thousands more. What we have found from looking at all those deals is that sellers who worked with an advisor saw payouts that averaged about 30% higher.
EBITDA Multiples For Insurance Agencies; Advisor-Led vs. No Advisor
Our SF Index provides agency owners with a wealth of data to help you make informed decisions about how to sell your insurance agency.
CONTACT US
For a confidential insurance M&A consultation, please fill out the contact form below.
Still Wondering How To Sell Your Insurance Agency?
Sica | Fletcher knows how to sell your insurance agency. As a “market-maker” advisory firm, we advise such a large number of agency owners on selling their businesses that our deals actually play a large role in shaping insurance M&A deals across the board.
When you are ready to discuss selling your agency, you can reach us at the link or use the contact information below.