Financial Planning for Insurance Agency Owners

An insurance financial advisor will walk you through four important considerations – the four Cs – to ensure your vision for the future and your finances matchup:

  1. What is the culture of the acquiring agency?
  2. How much control will I have?
  3. What’s the timeframe?
  4. How is the earn-out calculated?

Knowing the answers to these questions is imperative before you jump on an attractive valuation. We can help you:

Know Your Number
Many factors impact the amount needed from your business to fund the next phase of your life. Making calculations that consider life expectancy, inflation rate, annual savings and much more will provide your exact number. With this knowledge, you will know if the selling price is enough or if you need to rethink your exit strategy and work longer or focus activities on increasing the value of your business.

Model Sales Options
When you get offers on your business, we’ll model them out so you can make smarter decisions. This includes more than a financial analysis. When these models are considered along with the four Cs, then your plan of action becomes clearer whether that means you work for 10 more years at the acquiring company or stay put in your own agency.

Maximize After Tax Wealth
You know the impact taxes have on agency operations, but do you realize how they will impact the amount you receive when selling your business? Taxes could amount to more than 20 percent of the sale price which makes structuring the deal in the mot tax advantageous manner as possible imperative.

Take a Holistic Look
Many factors impact your overall financial plan. By taking a holistic look at your entire financial picture, we’ll make sure all the pieces come together to support your goals. From ensuring your estate plan is in alignment to making sure your employee agreements and buy-sell agreement reinforce your desires, you’ll know that everything is working together to keep you moving forward.

Financial plans can never be set and forgotten. As your life changes – your child decides to enter the insurance industry or you decide to expand your office – you need to adjust your plan to align with changing business and family goals. With a unified vision, you can secure the future you desire.

Contact: Jim King

Your BDF Expert Team