Top 10 Reasons to Assess Whether it is Time to Transition your Agency

When considering a transition in agency ownership, there are a lot of factors that you will want to be aware of to ensure that you’re making the best decision for both your future and your agency’s future. Take a look below at the top 10 reasons to assess whether now is the time to transition your agency.

  1. Personal Factors: Think about your personal factors like your health, is your focus and energy still there for the agency, is your age a factor, etc.
  2. Agency Performance: Review your agency performance and know your strategy for annual growth, how are your retention rate numbers (best practices agencies retain at 90%+), and is your agency hitting your target pro format rates
  3. Agency Health: Review and assess your agency’s health a good indicator of this is your agency’s balance sheet strength. Well managed agencies should target a Tangible Net Worth of 20% of Net Revenue
  4. Net Worth of the Agency: There are several factors that play into your agency’s net worth including, generational health of the staff​, Turnover/Retention rates, experience and tenure of your staff, employment agreements, number of licensed vs. non-licensed staff, employee development, recruiting and training, internship opportunities, and culture
  5. Complexion of the Book of Business: consider what your mix of business is between commercial and personal lines. Average Ohio agency is a mix of 48% PL and 52% CL
  6. Carrier Partnerships and Commitment​: what’s the mix of your carriers, what’s the longevity of the relationships, review the growth goals, and understand the perks/co-op resources
  7. Technology Systems and Marketing Efforts: ensuring you have a healthy relationship with technology and you’re maximizing the platform
  8. External Factors: There have been several changes that are impacting tax consequences​ – ensure that you know what they are and how they impact you
  9. Personal Financial Preparedness: Understand where you are currently with your agency and personal finances, agency valuations are at an all-time high!
  10. Perpetuation/Transition Plan: Do you have a perpetuation and transition plan for your agency, if you do not, it’s incredibly important to start that process NOW!

This list are the things you need to be aware of if you are wondering when the right time is for you to transition.

Are you considering transitioning your agency? Contact Jodie Shaw today at and we’ll be sure to get you everything you need to make this important decision.

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