January 15, 2021  
 
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How to Sell to a Business

 

Selling a Farm, Crop, and Livestock Insurance Business

No one said selling your business in a depressed economy would be easy. Fortunately, a farm, crop, and livestock insurance business sale isn't as scary as it seems.

If you plan on selling your farm, crop, and livestock insurance business quickly, prepare to be disappointed.
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Many business owners don't know that farm, crop, and livestock insurance businesses are still a hot commodity, to the extent that sellers have properly prepared them for the marketplace.

Dealing with Buyers

Business sellers sometimes struggle to maintain a positive attitude when dealing with buyers. The questions farm, crop, and livestock insurance business ask during due diligence are designed to alleviate their concerns about the business and should be promptly addressed by the seller. When concerns arise, it's helpful to base your responses on facts and data. If you don't know the answer to a question, there's no shame in admitting ignorance and telling the buyer you'll look into it. Refer to the Letter of Intent to determine how to wrap up due diligence and move the buyer on to closing.

Sale Preparation Timeframes

There are no effective shortcuts for selling a farm, crop, and livestock insurance business. For starters, the financials need to demonstrate a track record of profitability and growth. Next, the business will need to be documented in professional financial statements and manuals that facilitate the ownership transition. Since all of this takes time and effort, a farm, crop, and livestock insurance business can rarely be ready for the marketplace in less than six months. However, to command the highest price, you'll probably need to spend one to two years preparing and positioning your business for buyers.

Broker vs. No Broker

When selling a farm, crop, and livestock insurance business, you have two choices: Hire a broker to facilitate the sale or perform the sale unassisted. Is there a cost associated with hiring a broker? Sure - about 10% of the final sale prices. But a good broker will make selling your farm, crop, and livestock insurance business much less painful. You can also expect to receive a higher sales price for your business in a broker-assisted deal.

More Exit Planning Articles

Given your interest in exit planning and in farm, crop, and livestock insurance businesses, you might find these additional resources to be of interest.

Marketing a Farm, Crop, and Livestock Insurance Business

Role of Location In Selling a Business


Conversation Board

Sometimes the best tips on selling a business come from other business owners. If you have any tips or advice on how to sell a farm, crop, and livestock insurance business, we invite you to submit your comments and suggestions.


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Hoping to Open a Farm, Crop, & Livestock Insurance Business?

If you plan on opening a farm, crop, and livestock insurance business, these helpul resources may be just what you've been looking for:

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