A six- to seven-figure sale with 100% commission —
where do I look for that deal?

I can tell you where to look for that deal. Look in the mirror. That six- to seven-figure sale is your rep company, and the commission rate is 100% because you get to keep 100% of the proceeds (in proportion to your ownership of that rep company, of course.)

In this issue, Agency Sales magazine looks at how reps nearing retirement can achieve the best possible outcomes when they sell their rep companies.

A rep considering retirement has to do some serious soul-searching and answer some very tough questions:

• Have I identified a willing and able buyer, either within my own company or outside it?
• Have I kept financial records to document for that willing and able buyer the financial returns he or she can reasonably expect after the sale?
• Have I structured my company so that the willing and able buyer can manage day-to-day operations after I’m no longer part of the company?
• Have I planned for the retention of key employees and principals after the transaction is completed?
• Have I secured the counsel of a rep-savvy attorney and a rep-savvy accountant to navigate the many potential legal and tax pitfalls of the transaction?

And with the careful planning, the sale of a rep company can be a win-win for the buyer and the seller. One MANA rep reports he has purchased five rep companies over his career, earning the sellers fair return on their entrepreneurial investment and allowing the buyer to assemble a regional rep powerhouse that stretches from Maine to Virginia.

This issue of Agency Sales will give you the fundamentals you’ll need to start thinking about selling or buying a rep agency. For more MANA resources on this topic, contact MANA by e-mail at [email protected] or call MANA toll-free at 877-626-2776.