Why use NESG Insurance Mergers & Acquisitions Brokerage?

In every negotiation, we strive for a fair deal for both parties and only affiliate ourselves with organizations that share this vision. We do not represent bottom-feeders, tire kickers, or entities that are trying to buy companies with their own cash flow.

We know and understand the industry better than anyone. Our credibility with accountants and lawyers gives us access to data on past transactions that is not completely available in the market.

We’re successful with acquirers and sellers once we identify what both parties want. We have successfully completed these transactions even through the ups and downs of the process.

We have brokered many deals and come highly recommended by respected individuals in the Massachusetts insurance industry.

How do I recognize a “qualified buyer”?

We have found that there are certain traits inherent in a “qualified buyer.” These traits include being well-financed, able to make decisions in a timely manner, and possessing the experience of having purchased an agency in the past.

Why should I go through NESG Insurance Mergers & Acquisitions Brokerage rather than advertise and get a dozen of bidders?

This is a very good question. At first blush, it would seem to make a lot of sense to have an open bidding process whereby the largest dollar amount wins. However, the “perfect buyer” will not and does not choose to be a part of this bidding party. That’s because a qualified buyer with the means and the acquisition experience is not interested in investing the time, energy, and legal expenses only to have a one-in-ten chance of acquiring your agency. Secondly, we know firsthand who the qualified, quality buyers are, so we can save you a significant amount of time by helping you avoid tire kickers. We will only present you with true agency buyers that match your terms, price, culture, and chemistry. Please keep in mind, although all true agency buyers are different, they all share one common trait: They’ll avoid a bidding war at all costs.

What is a “True Agency Buyer”?
A True Agency Buyer possesses the following characteristics:

• Prior acquisition experience.
• Impeccable reputation.
• Capability and willingness to make a decision in a timely manner.
• Liquidity to meet or exceed your asking price/terms in today’s market.
• Flexibility to accommodate the terms and conditions of potential ongoing employment.
• Shares a similar culture and chemistry.

Who pays the brokerage fee?
The brokerage fee is paid by the acquiring firm. There is absolutely no cost to you, the seller.

Why does the acquiring agency pay the brokerage fee?
The acquiring firm is happy to pay NESG Insurance Mergers & Acquisitions Brokerage upon closing because of the exclusivity it gain through the deal. Buyers understand the value of exclusivity, because it enables them to avoid a bidding war. NOTE: There is only exclusivity after we have decided on the ultimate buyer together.

Will you assure my privacy?
Your privacy is absolutely assured. Your agency name, our mutual conversation, and any documents that are shared will not be disclosed to a third party without your written consent.

What is the motivation for an owner to sell?
There are a number of reasons why an owner might contemplate the sale of their agency. These include:

• Limited number of carriers
• The age of the owner(s)
• Additional competition
• Lower commission rates
• Increase in customer quotes
• General overall valuations are at a high
• The desire of the owner to do something different in life
• The need to have a perpetuation plan in place
• Higher salary requirements
• Higher healthcare benefits costs
• Tighter availability of quality staff and a shrinking pool of qualified employees

Will you match my agency’s culture?
A corporate cultural match is very important not only to you, but to your employees. If you desire to stay on as a full-time or part-time employee after the sale, these three components will help make the sale successful: Money, terms, and culture match.

Can I stay on after the sale?
Absolutely; the capacity is to be determined. More often than not, an owner stays on as a producer, agency manager, or consultant for a twelve- to twenty-four-month period, or longer. Employment details are customized to the particular needs of the buyer and seller.

Will the new owner need all or most of the present employees?
In most cases, absolutely yes. Quality employees are essential in ensuring the continued success of a well-maintained agency. Continued success means higher retention, and high retention is very important to a buyer, particularly if he pays 100% cash at closing.

Will you tell me what my agency is worth?
We will be happy to provide you with a realistic market valuation based on your financials, progress reports, and relevant criteria from prior recent sales of similar agencies.