MYTH #3: An Internal Buyer is the Best Buyer
IN THIS FEATURED SERUES, WE DISPEL THE MYTHS ABOUT SELLING AN AGENCY
Allow me to share the story of one of our past clients:
Robert* was a 2nd generation agent. He built a highly successful niche agency over several decades, dominating the market that he served. As he approached retirement, he sought to perpetuate the business to ensure both his clients and employees were taken care of.
Robert’s first desire was to sell to his key producers to keep the agency local. After failing to get the producers to agree to his price, he went to ABC for a 3rd party valuation. To his surprise, ABC came back with a market value significantly higher than he had proposed. After further discussions with his key producers, he moved forward with hiring ABC to handle the sale process.
ABC prepared the agency for market, disclosed over a dozen larger, strategic buyers, and coordinated meetings with each group to allow Robert the opportunity to ascertain which was the best fit. At the end of the process, he had 6 offers from a variety of firms and the ability to negotiate the best offer with the right firm to take over his agency. Due to the buyer’s size, Robert’s team gained the benefit of better resources and support.
In the end, Robert achieved more than double what he expected from the sale and left his agency in good hands. Many months after the deal closed, I called to check in with him and received a heartfelt compliment: “Calling you was the best decision I ever made.” We were happy to help and he is still good friends with our team many years later.