When it’s time to move on, The DBL Center can help.
We live in an uncertain world. No one is sure what the economy will do, how a revamped national health care plan will affect health insurance brokers, or the cascading effects such a plan will have on property & casual brokers. Many of us in the industry (including The DBL Center) plan to stay the course, adapt, and prevail. But that may not be the right course of action for every broker.
P&C brokers have a number of reasons they may want to sell their agency. There may not be an adult child or close friend willing and able to take over the family business. Maybe the owner is just ready to cash in on the fruits of their labor after all these years and enjoy retirement, or maybe there is a health issue. Or maybe an agency owner wants to take a full advantage of today’s valuation and multiples on today’s agencies across the country.
When selling is the right exit strategy, who do you sell to? This isn’t an easy decision.
Turn to Those Who Know
You know how to run an insurance brokerage. But you probably don’t know how to get the most value for it when you decide to sell.
The DBL Center Ltd. and Helfer & Associates, a consulting and advisory firm focused exclusively on the insurance agency industry, have forged a mutually beneficial agreement to help DBL Center brokers formulate and deploy an exit strategy when the time comes.
Kenny Helfer, Managing Partner of Helfer & Associates, is a trusted consultant specializing in independent insurance agencies and brokers that provide both property & casualty, as well as life & health benefits. Kenny’s firm provides substantive value for any agency owner looking to take some chips off the table for a variety of reasons. He prepares strategic road maps and financial analytics for agency owners looking for potential exit strategies. This includes formal introductions to all the major buyers in the market, based on the personal relationships Kenny has developed over his years in the industry. His proven track record, expertise, and assistance spans all phases of the preparation and sale. His goal is to maximize the value of an agency of any size and to generate the best possible deal, structure, and outcome for his agency clients. Most importantly, he guides the entire process and removes the stress that could come with the most important business transaction of one’s life.
Weathering the Change
Undoubtedly, the sale of an insurance brokerage can create stress on existing employees involved in the acquisition, which can lead to the loss of top talent within the agency. Employees may be unsure of their job security, the new management structure, and their new employer’s expectations. Helfer & Associates works with the new management team to ensure the transition is as smooth as possible to improve retention of the firm’s greatest asset – their people.
Stay with Those You Trust
One mistake insurance brokerages often make following a sale is switching their wholesale insurance general agency. When a larger firm buys a smaller firm, they might switch wholesalers to keep everything under the umbrella of the parent company—simply because that’s the way the larger firm has always done things. This isn’t always the right choice.
If brokers are accustomed to working with a best-in-class insurance wholesaler with access to top A+++ rated carriers and a host of value-added products and services like The DBL Center, changing insurance wholesalers can create culture shock, frustration, and, again, problems retaining top employees.
If your insurance wholesaler is providing the white-glove service you and your employees have come to expect, finding a way to continue working together following the sale could help ease the transition to new ownership, retain top employees, and maintain the firm’s value. After all, it is the people, the insurance products, and the service that gives a brokerage firm its value—before and after the sale.
The DBL Center Ltd. works hard to earn, and sustain, our brokers’ trust. We provide a host of value-added services, as well as carrying many ancillary lines of coverage to help brokers easily expand their book of business and increase commissions. With advanced technology that allows our brokers to more easily write and manage accounts, The DBL Center stays at the forefront of the insurance industry. We believed informed customers are our best customers, so we stay ahead of important industry news, like New York’s new Paid Family Leave law, passing the information on to our brokers as it is announced. We are ready with top carriers who can provide brokers with the products they need once mandatory PFL goes into place.
Is It Time?
Choosing to sell your insurance brokerage and leave your livelihood is not an easy decision. And it’s obviously not the right choice for everyone. But when the time comes, DBL Center Ltd., working with Helfer & Associates, can help you create an exit strategy you can feel good about while helping to maintain consistency within the organization.
Contact us to find out how you can get the highest valuation for your agency.
by Dawn Allcot