| Topic Name: |
Buying an Insurance Agency |
| Message Name: |
Buying an Insurance Agency |
| Date Posted: |
08/14/2004 |
| Message: |
I am interested in purchasing an existing book of personal lines business. (preferably non-standard) I have combed the web for business brokers specializing in insurance agencies, and have only found 2.
I would love to get the best thinking among existing insurance agency owners on a couple issues... What's the best way to purchase a profitable book? As I assume these books are not independently audited, how do I verify that the Commission Revenues being advertised are accurate?
Also, what's the best way to finance this purchase? I have 150K liquid to sink into the business personally, and want to obtain financing for the rest.
Most important, I would also love to hear any warnings considering pitfalls to watch out for from those who have done it.
I am definitely leaning towards the Independent agency model, but if anyone can provide solid reasoning why I should consider going the captive route, I would love to hear it. My initial thinking is against going that route for a number of reasons that have already been discussed here.
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