Why Use a Consultant to Manage Your Debt While Selling?

Having any kind of debt while you’re in business can be a little nerve-wracking, even if the business is swinging from strength to strength. But it can be downright terrifying to manage if you’re in the middle of selling your agency. Part of handling this process should include asking for help from a consultant who specializes in agency sales. The right professional can make it possible to not only structure and rework your debt but also to alleviate the stress of combing through the numbers and answering countless questions about all incoming and outgoing funds.

Fixing the Budget

Whether you’re looking for capital or trying to work out a way to transfer your assets, a consultant can help you determine where you should be directing the money and how to make it happen in the middle of a sales transition. Part of why a consultant works so well in these types of chaotic situations is because they don’t have a personal connection to the agency. They can spot unnecessary expenses or overlooked opportunities that could kill two birds with one stone. Agency Brokerage Consultants has been servicing agencies for a long time, and we know that no one is immune from being too close to a problem. From owners to accountants, there’s usually more that can be done when it comes to managing debt.

A Systematic Approach

Managing debt is going to mean looking at the deficiency from every angle. It’s why a good consultant will take a systematic approach before recommending a solution. By starting with the basic financial information (e.g., monthly income, fixed expenses) before working their way down to salaries and trust account management, a clear picture can emerge about how the agency accepts and spends money. From paying down high-interest debt to consolidation strategies, the goal is always to ensure every cent is being spent or saved as wisely as possible. This will expedite the sales process while smoothing out any inefficiencies at the same time.

Protection of Credit

Regardless of how much your agency is being sold for, you still don’t want to hurt your credit during the sales process. Agency Brokerage Consultants has worked with sellers under a number of different circumstances, which makes us a go-to resource to keep your credit as stellar as possible at every stage of the sales process. We know that a client who’s ready to retire will have very different financial needs than someone who’s getting ready to start their next venture. By customizing our strategies for each client, we make it possible for them to hand over their agency with full confidence to move onto whatever’s next!

Clear Communication

A buyer is going to want to work with a company whose finances are as straight-forward as possible. If they can’t figure out why money from trust accounts keeps getting mixed up with operating accounts, it’s a red flag that someone isn’t paying attention at the agency. Messy debt or discrepancies between projected and actual assets can make a buyer nervous enough to pull out of the deal at the last minute. Not only will this be a huge inconvenience to the seller, it can push back a seller’s timeline by months. To avoid this fate, Agency Brokerage Consultants makes it easy for buyers to understand how the money is being managed, who’s doing the work, and when the reporting happens.

Taking the Plunge

Agency Brokerage Consultants has seen insurance agencies fall into too many traps when it comes to buying and selling, which is why we’re a beacon in the darkness for clients in the middle of a sale. Calling us today is an excellent way to share the details of your debt and get answers to your specific questions. While we may not know your daily processes, we do understand insurance agencies on a global scale. We’re able to put that knowledge to work by anticipating the most common problems during a transition, and then actively working to prevent any potential confusion.