Looking to Buy Agency- INPUT WANTED!

SueNami

Expert
50
Hello all!
I am looking to buy a book of business and would love input from both people who have done it right, and people who made mistakes that I can learn from.

My background is working for both captive and independent agencies for 13 years.

I would prefer to ultimately have an independent agency, and honestly Erie holds a special place in my heart. lol

That being said- I have extremely limited capital (read as $0) and know that may limit me to taking baby steps with a captive agency and making the transition later. (I am currently an approved buyer for Allstate)

I am open to moving but live in the Capitol area.

The reason I wanted to buy something and not start scratch, is that quite frankly- starting scratch scares the crap out of me. I have been managing other agencies for so long I am confident in my ability to manage and grow an existing book with a team, even if it's small...but being on my own, having to make that next sale to get my next paycheck seems overwhelming to me. I'd rather worry about our growth and profitability of the existing book.

Unfortunately I'm not married, so I can't do the captive and have my 'spouse' own an independent. lol Maybe a good reason to start looking???


So I guess any info or advice you are willing to offer would be appreciated.

If anyone knows specifically if Erie agents are selling their books to outside buyers? I've heard not...
Or financing for independent agencies? one reason I'm considering Allstate is because you can get in with $0 down, as long as the asking price is reasonable. Though I feel like I'd need to go in with an exit strategy.

Thanks in advance!
 
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I may be wrong but I honestly don't think buying an indy book for 0% down is a possibility. I can't think of any situation in where this would benefit the seller.
 
I would not go with Allstate, especially since you say you have no
capital.

Allstate will nickel and dime you to death. They constantly come up
with new things that cost you money.

Example, all of a sudden they may decide you need full time help or
two full time help. This can come with no forewarning and could be
mandatory. How would you pay the staff?

There are a million caveats like this with them. Stay away, IMO.
 
There are some financing options out there, but buying an independent agency with $0 in capital is going to be tough. If you found the right agent that wanted to structure more of an annuity style buyout you may be able to do it, but those situations are hard to find.

Even the Captive side can be tough with $0, surprised that Allstate pre-approved you as I thought they were asking for proof of assets up front these days.
 
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