Why you need our book of business team on your side

Our culture of caring, connection, education, and loyalty bound together with our expertise on systems, processes, industry education, and business strategy brings our agents a level of support they can rely on — from the day they pass their insurance exam, to the day they retire.

How To Value Your Business

Considerations of Valuing Your Book of Business

- The agent’s specific carrier contracts and renewal rates on all policies written
- What carrier each policy is written through. Carriers vary in retention rates, so stable carriers tend to appraise at a higher value.
- The product types of the policies.
- The age of each policy, primarily in relation to the years of remaining renewals.
- The age of the policy holders.
- The geographic location of the policyholders, as specific state laws and regulations may impact volatility of the renewal, like anniversary laws or birthday rules.

Solutions for Every Agents Unique Situation

From building your business right to helping you transition to the next stage, we’re your agency solution from start to finish.

Medicare Agents who need help with systems and processes to adhere to the new CMS regulations, call recordings, etc.
Agents who need assistance organizing and maintaining their block of Medicare business.
Agents who have decided that the MA, PDP, or Medicare market isn’t for them and want to exit the product line without hurting their clients or losing renewals.
Agents who want to build a bigger Medicare client base.
Agents who want to find a better enrollment solution.

Five Steps To Do Internally Before Selling

Preparing for the Sale of Your Business

Look at your business structure. If you are not incorporated, you need to become incorporated if possible. You can then move your contracts under the corporation, which will ease the transition of the contract to the buyer.
Prepare your client data. Verify that it is complete and up to date.
Clear any outstanding compliance issues or debit balances. It is important to note that advancing is considered a debt, so move contracts to an as-earned status.
Do a thorough and honest self-examination as if you were the buyer versus the seller.
Make certain you are mentally prepared for transitioning out of your agency.

Preparing for the Discovery Call

The discovery call is designed to get an overall view of an agent’s business. An agent should be prepared to tell their story. In addition to a high-level look, the following details will be discussed.

- Marketing and communication systems with prospective and current clients
- The current model of servicing existing clients and customers
- Data management and client information
- General office procedures
- Corporate structure
- Contracts with carriers
- Geographic market area
- The mix of business by product line/carrier
- Physical assets of the agent/agency – office building? home based?
- Staff and sub-agents – including job duties and compensation structure
- Goal of the transaction – Why is the agent considering selling their business?
- What are the agents plans in the insurance industry after the transition?

Setting Your Business Up as a Corporation

PDF Quick Guide

Benefits of Contracting as an Agency

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A look Into Acquisitions from An Agents Perspective

Key Points to Remember During the Process of a Sale

Take a more detailed look into how to prepare your business, and yourself, for the next phase of your journey.

Carrier Contracts –

Do Them Correctly, From the Start

Contracts that have an individual versus a corporation as a principal can complicate and financial transaction and leave a book of business at risk.

Also, some agencies use sub-agents as the principal on some carrier contracts. This practice is dangerous. It can place the ownership of those policies solely in the hands of the sub-agent and not the agency owner.

Agency owners should also be aware that if an agent has assigned their commissions to the agency, then the agent can also un-assign them as well because they own those commissions, not the agency owner.

Managing and Maintaining Client Data

It is extremely common to find that client data is incomplete and inaccurate. Verifying and putting the data in digital format will significantly expedite and transaction. It is impossible to attain the full value of a client during a sale if information about that client is incomplete or disorganized.

Have Realistic Expectations of Value

As agents, we are very connected to our relationship with our clients. A buyer has not had that same history with your clients, so they will be looking closely at the numbers. They will look at the type of policy, age of policy, the age of the policyholder, etc. Be mentally ready for the buyer to be less emotionally involved than you are.

Schedule your confidential discovery call today to find out more about how to ensure your hard work, sweat, blood, and tears can become a lasting legacy.

I am totally pleased with the process of the sale. The evaluation and actuarial assessment of the book of business by SBS was done very accurately and expertly by seasoned veterans of the insurance industry. The management is very experienced in agency acquisition. SBS is my choice to continue to serve my clients. They were very helpful to us in the transition. I feel they are a very qualified management team with the ability and personnel necessary to do the job seamlessly. Thank you SBS Team!!

Our tagline says it all, "We Make Medicare Easy." It's a pleasure being able to extend our service and model of care to thousands more Medicare beneficiaries through Acquisition Pathway. SMS has spent decades building trust and fulfilling promises to their brokers. Now SBS can extend that promise to those brokers' clients as we serve them through AP!

As agents are well aware, their relationship with clients is one of the most precious things they have. These individuals' decisions to move their clients to our care did not come without them having both fears and tears. Knowing that so many insurance professionals have entrusted that valuable relationship to be cared for by our company is a testament to everyone within MMG's dedication to quality and service. Our privilege and duty now are to honor these agents by welcoming these new clients to the MMG family.

SMS is my go-to for keeping up-to-date with the Medicare market. I am a single owner of a small brokerage. When I purchased the business a few years ago, provided all the information about contracting, training, licensing and insurance. They even provided advice with how to negotiate a fair price and tips for transition communications. It would have been tough to get up and running without their guidance and support. The ongoing education opportunities are invaluable. SMS is my upline and lifeline!

Why you need our book of business team on your side

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