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So in looking for a way out of a captive agency as an independent contractor, I'm looking at the option of buying an agency. My current market is mainly nonstandard with a fair bit of midmarket.
In talking with a prospect, I learn his current agent is only operating his agency on limited hours due to illness. I took this opportunity to seek out the owner and see if he would sell. He says he is not actively looking but wouldn't rule it out.
So, if I can convince him to sell, what should I expect??? Given the circumstances, Im not sure he would do any owner financing agreement. If I have to borrow the capital, what percentage of the purchase price should i expect to need up front? What kind of interest rate should i expect if i have good credit? These things are usually 10 year term, right? What kind of expenses are involved in the purchase?
Since I'm wouldnt be purchasing just the BOB but the whole agency, assets and all (the office space is leased not owned) would that affect the valuation? Since its mostly a nonstandard agency, should i expect any difficulty keeping the appointments?
Basically i would be walking into this with no experience in buying something like this, so i dont even know what questions to ask. Help me understand what i need to know about the process, what challenges I can expect to face, etc.
Thanks in advance
In talking with a prospect, I learn his current agent is only operating his agency on limited hours due to illness. I took this opportunity to seek out the owner and see if he would sell. He says he is not actively looking but wouldn't rule it out.
So, if I can convince him to sell, what should I expect??? Given the circumstances, Im not sure he would do any owner financing agreement. If I have to borrow the capital, what percentage of the purchase price should i expect to need up front? What kind of interest rate should i expect if i have good credit? These things are usually 10 year term, right? What kind of expenses are involved in the purchase?
Since I'm wouldnt be purchasing just the BOB but the whole agency, assets and all (the office space is leased not owned) would that affect the valuation? Since its mostly a nonstandard agency, should i expect any difficulty keeping the appointments?
Basically i would be walking into this with no experience in buying something like this, so i dont even know what questions to ask. Help me understand what i need to know about the process, what challenges I can expect to face, etc.
Thanks in advance
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