- Buyer Consultation
- Seller Consultation
- Financing Arangements
- Negotiation Analysis
- Contractual Review
- Dissolution of insurance agencies
- Expert witness testimony
- Industry Valuation
- Buy Sell Agreements
- Producer compensation agreements
- Perpetuation Plans
- ROE Return on Equity
- EPS Earnings Per Share Analysis
- Return on Investment (ROI) analysis
- Letter of Intent
- Earn Out provisions
If you don’t ask for what you want, you may never get it. This applies to both those making the offers as well as those receiving them. Before making any offer we review with both buyer and or seller what the best case scenario is and work toward being committed to that position.
Both buyers and sellers want their "best price" and while the price drives the deal, terms make the deal. Terms often are what make a deal. A great price with bad terms does not work. One of the best features of Merger Makers are our actual buyers represent very strong balance sheets and offer industry leading terms and price. While the details of the transaction, including liabilities, warranties, and other responsibilities, are all part of the negotiation process, the price and terms make or break an acquisition.
To negotiate a fair purchase price, both sides must consider the current and future value of the agency asset and any outstanding liabilities outstanding. While the book of actual business produces the actual revenue the valiue of goodwill, customer loyalty, and other intangibles must be added or subtracted.
While we have a wealth of information on negotiating that is only available to our users. We follow five simple principles when preparing for any negotiations.
Prepare and Review SWOT analysis
A SWOT analysis is a strategic plan for both buyers and sellers to evalute their agency. The analysis is the road map for what our goal is to complete any acquisition.
Final Income Target
Our final outcome is helped by the above SWOT analysis but the outcome could result in a variety of options for both the buyer and seller. Since there are potentially different outcomes you must decide a priority list of “close the deal” scenarios as well as "walk away" options.
Be Prepared for the Negotiation Like our friends at www.theinsurancebrain.com say "Knowledge is power" we understand the importance of information to help guide your decisions from the different outcomes that might be available. Having the knowledge and knowing how to act in the moment will give you an edge as you start to negotiate. Lack of planning leaves you rattled and unable to provide you with the direction needed.
Ongoing Relationship so do not Alienate While we want to always present a professional and informed front we always want to recognize both the buyer and of seller for their past successes. Addressing long term scenarios and recognize the importance of an ongoing relationship. Particular buyers we represent encourage principals who still have a desire to stay on become involved with the ongoing concern. Trust and respect is a two way street and both the buyer and seller must be working toward having these mutual traits.