Frequently asked questions

Have questions? We have answers.

If you’re thinking of selling or merging your independent agency, you probably have questions. Here are answers to some of the more commonly asked questions. Still want to know more? Get in touch with the independent agency acquisitions team today.

Working with Nationwide Agency Solutions

What happens after I contact Nationwide Agency Solutions?

You’ll be paired with an agency solutions consultant in your area. Your consultant will contact you to learn more about you, your agency and your long-term plans. After getting to know you, they’ll educate you on various options that make sense for your unique needs. If you decide to move forward with any of our services, they’ll guide you step-by-step through the process. Whether you’re looking to sell, merge, get an agency evaluation, or just need help with succession planning or perpetuation strategies, your consultant is there from start to finish. Best of all, their services are free and fully confidential.

What types of information will I be asked to share with the business consultant?

We’re happy to have an initial conversation with you to introduce ourselves and explain our services before you share any sensitive business data. If you decide to move forward with any of our services, we want to give you options tailored to your specific needs. To provide that level of personalized service, we’ll need a full picture of your agency’s unique situation, including financial and carrier data. Before you are asked to provide any of this data, we sign a confidentiality agreement. Your consultant will safeguard your information and only share it as necessary and as outlined within the terms of the agreement

How can I be sure that my information will remain confidential during the due diligence process? Will my employees, referral sources or competition find out?

Protecting your privacy is important to us. That’s why we jointly sign a confidentiality agreement at the beginning of the due diligence process. Your consultant will safeguard your information and only share it as necessary and as outlined within the terms of the agreement. That includes safeguarding the details from employees, referral sources and your competitors throughout the process.

Selling your agency

Why should I consider selling my agency to a Nationwide affiliated agency?

Finding a buyer who is the right “fit” for your agency is the cornerstone concern of most sellers. Nationwide has thousands of affiliated agencies all over the country that are very interested in buying independent agencies and we would be happy to introduce you to potential buyers.

What do I need to have prepared to sell my agency?

If you work with us to sell your agency, we can help you complete the process of gathering the documentation required to sell, conduct agency evaluation and complete agency due diligence. Your specific circumstances will determine the type and amount of information required.

Will Nationwide purchase my agency?

No. Nationwide does not purchase independent agencies. We connect you to prospective buyers interested in terms that make sense for you.

If I sell to a Nationwide affiliated agency, will my customers have to switch to Nationwide products?

No. On one hand, a major benefit of selling to a Nationwide affiliated agency is being able to provide your customers with Nationwide products and support. On the other, it’s important to minimize disruption to your customers during the sale or merger of your agency. That’s why we think it’s important that your customers still have a choice in products.

Merging

What does it mean to merge my agency?

In a merger, a larger agency agrees to purchase your agency. It differs from a standard sale because you and your staff can be retained as associates of the larger agency. A merger allows you to receive the equity that you have built within your agency, while still maintaining an income stream and gaining access to the larger agency’s carriers and markets. If you’re interested in eliminating the responsibilities of ownership and want access to your agency’s equity now—but still want to stay in the insurance business—a merger could be right for you.

What do I need to have prepared to merge my agency?

Merging with a larger agency requires the same due diligence process as selling your agency. If you work with us to merge your agency, we can help you complete the process of gathering the documentation required to sell, conduct agency evaluation and complete agency due diligence. Your specific circumstances will determine the type and amount of information required.

Can I merge and retain key staff or family members?

You can negotiate this with the buyer. Many buyers have a need for qualified producers and customer service representatives, particularly when they have relationships with existing clients.

If I merge with a Nationwide affiliated agency, will my customers have to switch to Nationwide products?

No. On one hand, a major benefit of selling to a Nationwide affiliated agency is being able to provide your customers with Nationwide products and support. On the other, it’s important to minimize disruption to your customers during the sale or merger of your agency. That’s why we think it’s important that your customers still have a choice.

Am I committed to working with the buyer you introduce me to?

No. We do our best to introduce you to a prospective buyer who’s a good fit for your agency profile. Occasionally, a buyer and seller we’ve introduced may not be the right fit for one another. In those cases, we have other prospective buyers we can introduce you to.

Agency evaluation and due diligence

How much is my agency worth?

It depends on the mix of business, retention, revenues vs. expenses, agency location and other variables. If you’re selling or merging, there may be specific factors that make your agency more valuable to some buyers than others. We’ll help both parties to understand all the factors that go into a successful transaction.

How long does it take to complete the due diligence process?

It depends on how quickly you provide the documentation required to evaluate your agency. None of the information we request is particularly onerous, but it typically takes a few weeks for an agency owner to compile and send the data. If you are selling or merging, buyers can work at your pace to evaluate the opportunity your agency affords.

Neither Nationwide or its representatives provide legal, financial, tax or business advice. Agency owner is solely responsible for the terms of any contract relating to the merger or acquisition of their agency. Please consult an attorney or tax advisor.

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