Financing. 

To get technical; lack of financing.

Don't fail alone.  Succeed with Maverick! 

We have financing solutions for numerous types of insurance agency needs.  Are interest rates at an all-time high or all-time low?  All-time low, right?  Why not take advantage of low rates now to catch-up, keep-up, or forge ahead!

Want to:

• Expand or Purchase a building instead of renting. 
• Buy technology to keep up?
• Lower your interest rate to get cash out or save thousands by refinancing?
• Buy a same-sized or smaller agency to instantly supercharge your revenues, bonuses, and marketshare?

Highly desireable top tier Banks and Lenders have made a limited amount of money available specifically for agency owners to purchase new or refinance existing insurance agencies.  Don't Let This Opportunity and These Low Rates, PASS YOU BY.

If you have:

• Purchased an agency in the last 5-10 years,
• A 8% interest rate or more,
• Intentions to buy an insurance agency in the next 12 months,
• To preserve your own cash now and leverge special programs offered by top lenders to loan you money at a low rate...

Call Maverick Agency Consultants, LLC now!  855-543-8622

or e-mail us info@sell-my-agency.com

Why does financing fail?

Let's face it, an insurance agency owner is about to sell their largest asset, in most cases, and to someone they do not know.  They want to get paid.  I don't blame them.  Wouldn't you want to be paid if you were selling your largest asset?  Buyers who can't sympathize, be careful how you answer since one day the goal will be to sell your agency for as much money as possible, right?

So why is Financing the #1 reason deals fall apart?  There are a few reasons for Buyers and Sellers.

For Buyers:

• No down payment: You need 10% to 20% down, normally.
• Bad Credit: Tax Liens, Short Sales, and Foreclosures are a red flag.  So are multiple late-pays on smaller debts.
• Experience: Not enough industry or agency experience.
• Terms: The only thing more important than Price, is Terms.  Know how to use the Terms of a M&A transaction to your advantage.
• Ignorance: Your bank does not understand insurance agency transactions.  They are used to loan with hard asset collateral, like land or buildings.  We have a dozen lenders that understand and LOAN on insurance agencies!
• Over-estimated Value: This is a big one.  Buyers are often salespeople.  (So am I).  However, some Buyers act as if they are the only Buyer out there and both the Seller and the Lender should make incredible concessions on their behalf.  Buyers need to recognize their true position, strengths and weaknesses, to make the best possible effort to purchase an agency.  Also, getting approved for financing up front or get your partner(s) to committ to a specific range of insurance agency criteria will help your case.  If you have all cash, that's valuable, but don't get too cocky.  If you don't have all cash, that's ok, you represent the vast majority of our Buyer clients.  Either way, be prepared by utilizing an experienced broker, like MAC. 

Why would you spend $1,000,000+ on an agency with literally 1,000's of moving parts without consulting a professional who buys and sells insurance agencies for a living?  Especially since it costs just pennies on the dollar.

For Sellers:

• Try to DIY: Sellers fail to realize that to get a qualified Buyer, you must talk to 10-20 not-so-qualified Buyers (that was the nicest way to phrase that).  After messing around, sometimes for months and with multiple tire-kickers, the pain is so great that Sellers will go out and get a Broker.  A Broker shouldn't reduce what goes in your pocket, either.  Brokers charge a fee, but they open up a vast network of Buyers and Brokers to get you top dollar for your agency.  Usually, far more than you could get alone, which justifies the nominal fee.
• Trust: Sellers trust what the Buyer says and doesn't really qualify a Buyer like a Broker will before entering into negotiations.  After-all, both Sellers and Buyers are insurance salespeople so they tent to empathize with each other.  Seven months later, after they've shared all of the sensitive information about their business, the Seller has to start over after he finds the Buyer had no money, bad credit, and finally asks the Seller to owner finance the entire purchase at a redued price...Ouch.  I hope the Seller had a solid Non-Disclosure Agreement in place.
• No Broker:  This sounds self-serving, but listen up.  A Broker is there to protect you and your business.  A Broker allows you to continue to do business while you try to sell.  Imagine busting your butt to sell your agency.  Who will run the agency while you do this?  If agency revenue falls, so will your price.  Your price will not fall dollar for dollar, the price falls by the multiplier!  $10,000 in lost revenue could make a $15,000 to $20,000 difference in your pocket.  A Broker also deals with the numerous Buyers and qualifies them based on your criteria.  This is very time consuming.  Brokers negotiate and throw out low-ball offers on your behalf too.
• Ignorance: "You don't know what you don't know."  So if you have never sold an agency, how would you know all of the options available for you and for Buyers out there to get a deal done?  While no one can know it "all", if there's a way to get it done, we'll find it.