Insurance firms offer brokerage solutions to a wide range of clients and businesses, with many operators engaging with clientele across the globe. This sector is widely regarded by investors as gradually evolving and a relatively secure sector with longevity, resulting in a highly lucrative market for those looking to realise their acquisition or business exit strategies.

Our professionals understand the opportunities and challenges that exist in the insurance sector and offer solutions to help clients fulfill their strategic goals and objectives. Our depth of expertise stretches through all stages of the buy/sell process – from initial planning to successful execution.

THE BUYING PROCESS

The insurance sector presents an abundance of exciting opportunities for both new market entrants and market veterans alike. With the correct guidance you will be able to buy the perfect insurance brokerage that fits your criteria. With our market specific knowledge, we can provide you with the assistance you need to capitalise on this lucrative sector.

  • 1. Registration and Requirement

    Once you have made your decision to purchase an insurance brokerage, we will ask you to register with us. When the registration process has been completed, an experienced negotiator will be assigned to you in order to establish all of your business requirements, such as necessary funding, search criteria and size of brokerage, in addition to gauging your knowledge and experience within the sector. This will enable the negotiator to understand you as a person and your future business goals.

  • 2. Verifying Documents

    Your dedicated negotiator will liaise with you to acquire all the essential documentation necessary to ensure that you are verified for when the times comes for you to make an offer. In the majority of cases, the seller will give priority to buyers with funding already in place to avoid the oftentimes lengthy process of applying for finance. At this stage, your negotiator will discuss with you your acquisition options and timescales.

  • 3. Finding your Dream Insurance Brokerage

    Your negotiator will filter through our database of currently available insurance brokerages, shortlisting a collection of opportunities that match your search criteria for you to review. In the meantime, if any further businesses brought onto the market match your search criteria, we will communicate these to you via email.

  • 4. Value of the Brokerage

    When buying an insurance brokerage, it is important to understand the key factors that will have the greatest impact on its value. These factors may include repeat clientele, motivated staff, organic growth figures and transition support from the seller. The value of an insurance brokerage is commonly defined as a multiple of the EBITDA figure – commission earnings before interest, taxes, depreciation and amortisation.

  • 5. Negotiating Offer

    Once you have identified and reviewed a suitable insurance brokerage and would like to pursue with an offer, Kings Professional will act as the intermediary between yourself and the seller, handling all communication between the two parties throughout the entire process. It is important to remember that we are working on your behalf, and as such we are more than happy to offer you advise through every stage of the offer making process.

  • 6. Completion

    When the seller has accepted your offer, we will guide you throughout the process through to completion; offering advice on what to cover in due diligence and recommending a solicitor with specialities in the buying and selling of insurance brokerages.

  • 7. Communication

    Most sellers are highly concerned about the confidentiality of their sale, and as such will not want to be contacted directly by any potential buyers. During the entire process, we will act as the intermediary between yourself and the seller. We are more than happy to answer any questions from yourself will and communicate these between both the parties.

  • 8. Testimonials

    Once the transaction has been completed, we will request you to provide us with your feedback and suggestions. Your negotiator, who you will have established a strong business relationship with by the end of the process, will be keen to hear any of your feedback.

THE SELLING PROCESS

The UK insurance sector is a mature consolidating market, and as such garners interest from a wide range of clientele; our client base features a mix of national and international purchasers. We want to achieve the best price possible for your business, and marketing to our diverse client base will ensure that your insurance business realises an optimal result. With over 30 years of experience, we are the brokerage that you need. We have extensive experience in serving all types of independent insurance agencies throughout the UK, offering advice and growth strategies to achieve their goals.

  • 1. Appraisal of your Brokerage

    Before we commence the sale process, we would first like to understand both your business and what you are looking to achieve from the sale of your insurance brokerage. To facilitate this, we will conduct a market appraisal of your brokerage, allowing you to understand what we believe your business will be able to achieve on the current market. Beyond this, we will also provide you with a realistic timeframe in which we believe the brokerage will have completed the sale process, granting you the opportunity to start making plans for when your business has successfully sold.

  • 2. Welcome Pack

    Once you have made the decision to sell your brokerage with us, we will ensure that you are well equipped for when an offer is placed for your business. The number one reason why acquisition deals fall through is time, and at Kings Professional it is our role make sure both parties are fully versed in their requirements throughout the process, making the sale as smooth and succinct as possible.

  • 3. Preparing for Sale

    Buyers will want to access a comprehensive overview of your business before they will consider placing an offer, including repeat clientele, organic growth figures, general running costs and staff overheads. Therefore, we will request from you a list of documents that you will need to prepare before the sales process commences.

  • 4. Confidentiality

    We understand that a large proportion of brokerage owners will be hesitant to publicly announce their intentions to seek new ownership. At Kings Professional, we have over 30 years’ experience in facilitating highly confidential sales, ensuring neither your staff nor your clients will be aware of the sale until the process has been completed.

  • 5. Marketing your Business

    To ensure that we find the perfect buyer for your brokerage within a timely manner, we engage in extensive marketing campaigns on a variety of different platforms, both online and offline. Our in-house marketing team will create bespoke marketing materials that will be distributed in a confidential manner on an assortment of business for sale websites, targeted email campaigns and traditional press.

  • 6. Match your Criteria for Selling

    We understand the importance of not only succinctly finding a potential buyer for your business but finding the correct buyer for your business. To ensure that all buyers who place an interest in your brokerage are genuine, we undergo a comprehensive verification process in which we will gauge how experienced a prospective buyer is within the industry, and what level of funding they have readily available.

  • 7. Vetting & Negotiating all the Offers

    We will act as the intermediary between yourself and any prospective buyers, so accordingly we will ensure that any offers that get put forward to yourself have been reviewed and vetted by us. As part of our Corporate Sales Process we will arrange a bids invited auction whereby multiple buyers will be pooled against each other and encouraged to offer increased bids via two/three rounds of bidding.

  • 8. Completion

    Once you are happy with the offer, we will guide you throughout the process through to completion; offering advice on what to cover in due diligence and recommending a solicitor with specialities in the buying and selling of insurance brokerages.

  • 9. Communication

    We aim to communicate realistic deal timescales and act on your behalf to work towards a timely and successful completion. We will frequently contact all parties to make sure that your business sale is on track for completion, and that deal timescales are adhered to. It is in your interests to work closely with us on this.

FAQ Icon

BUYING A BUSINESS - FREQUENTLY ASKED QUESTIONS

  • What sort of insurance do I need?

    Your main cover will be Professional Indemnity Insurance. This is a vital consideration for any business that gives professional and financial advice. You may also consider more generic insurance options such as Public and Employers’ Liability.

  • How long does it take to buy a business?

    This time will vary greatly depending on the business. There are multiple factors to consider; whether your offer will be accepted, whether you have the right sort of solicitor, and how long the Due Diligence process will take. We advise purchasers on every single step they can take to speed up the process.

  • Will there be a handover period?

    Some vendors may stipulate an ‘earn out’ period as a part of their stability measures during the transition of ownership, this can be enacted for upwards of 12 months and is ultimately up to the vendors discretion.

  • What is a SPA?

    This is a Share Purchase Agreement, a binding legal contract between two parties to facilitate a transaction.

  • What is an NDA?

    This is a Non-Disclosure Agreement, another binding legal contract. When signed, it confirms that the person who signed the contract will not divulge any confidential information. We use this agreement to protect the rights of business owners, and we may ask you to sign one before we provide you with any information on businesses that are confidential.

  • What regulation must I comply with when purchasing an insurance firm?

    You must supply the Financial Conduct Authority with a Section 178 notice to notify them of the intended change of ownership.

SELLING A BUSINESS - FREQUENTLY ASKED QUESTIONS

  • How would you appraise my business?

    One of our Associate Directors will visit you and will conduct a Business Sale Consultation. It is in this meeting where the fundamental details of the sale project will be agreed. During this appraisal, the Associate Director will conduct a market appraisal for your business, and a guide price will be set. This appraisal will be based on both the details of the business, and the current market climate for an Insurance Brokerages.

  • Will I need to reveal details about my business that I wish to remain confidential?

    When we market your business to clients interested in the insurance sector, we can do so confidentially, without revealing critical information.

  • My insurance business operates in a niche market, how will you target buyers effectively?

    We utilise multiple channels of communication to target specific groups depending on the unique nature of your insurance business. Our main channels for marketing communications includes the use of email marketing tools to create bespoke campaigns; dedicated research aimed at identifying appropriate buyers; the collation of an Information Memorandum (IM) for distribution through our Corporate Sales Process; in addition to matching your business specifications against our extensive database of registered buyers to identify and liaise with potentially interested parties.

  • What is an IM?

    An Information Memorandum is a formal sales brochure that is distributed to interested parties. The brochure provides them with a summary of your business, highlighting key selling factors along with a relevant information regarding your business. Ultimately, an IM provides an interested party with an enhanced overview and an informed insight into your unique opportunity.

  • Will there be a handover period?

    You may wish to stipulate an ‘earn out’ period for the purchasers as the business transitions under new ownership, the length of this period will be down to your discretion.

  • Is my insurance firm large enough to be placed on the market?

    Our market analyse has indicated that buyers in the insurance market require a minimum turnover threshold of £250,000 per annum and at least 2 partners or directors within the company.

OUR SPECIALIST CAN HELP YOU TODAY







Or call us and we’d be happy to help

TO BUY, CALL 01772 775 775

TO SELL, CALL 01772 775 755