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Anyone here who can refer me for internal project for dot net profile.
Garib ko accha account ki khoj hai... Bohot struggle Kiya hai abhi tak ..
fun apart.
If anyone can refer my profile within their project for dot net then that will be great help .
Posi - sa Exp - 7 years Te h - .net ,not angular but willing to do Cognizant
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Does realization rate as an associate matter?
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Continued - they have 2 agents (over the age of 60), 1 receptionist (who only answers phone calls, doesn't do any servicing or even use the management system), a burnt out csr, and me (I do processing, csr servicing, accounting). They are trying to hire an agent and CSR with no luck. They want a commitment from me to continue the agency but it seems like it would take a major, expensive overhaul, lots of hours, and most likely still low pay. Maybe I've answered my question haha. Family businesses are hard.
Where is all of the money going from the agency? Someone has to be making money or the business would have went under by now.
I’d set the price you want from your family if they expect you to take this on and negotiate a physical contract that sets you up for increases in the future too.
I’d also lay out your plan to make changes and if they aren’t on board with it then I wouldn’t do it. If you’re planning on hiring they’re going to need to make a financial investment in not only you but also your plans to replace those missing people and maybe give the current good employees a bump.
Hope this helps.
Tell them they need to open the books to you FULLY and explain how everything works. Agency contracts, customer retention, profitability requirements on the book, fixed expenses, variable expenses, all of it. You NEED TO KNOW how every single dime is made in this agency, and what impacts it (loss ratios on book, new versus renewal, contingency bonuses). Then you need to understand every outflow of expenses.
Also if you take over the agency, 1) you need to continue to maintain a pipeline of new sales. This is harder than it used to be since millennials and genZ are using online quoting more often than boomers or genX. 2) yes the technology investments will need to be made. Know that this type of overhaul costs money and time to implement, train, and input all data from the old system to the new. 3) trouble finding good workers isn't going to change. People are job hopping in droves, especially in insurance. 4) being an agency owner is a ton of work. They'll likely sell you the company for some multiple of current revenue (say 5x agency revenue) so you'll take on debt to pay that off. You need to be confident you can continue the current revenue AND make more so that you can afford the loan.
They sound exhausted and sick of dealing with the employee turnover, bad systems, and lots of work. Most agency owners coast into retirement with fat renewal books, work 10hrs a week, and golf the rest. Could be that's what your owners wanted but aren't getting. When they come up with a number to sell you, remember for most owners their book of business IS their retirement plan. That's their nest egg. They will overvalue the crap out of it.
Sometimes crazy good opportunities fall into the laps of good people. Sometimes what seems like a good opportunity is a huge curse. It's up to you to figure out which this one is.
Also remember that you working there doesn't mean you owe them anything. Because they made the offer doesn't mean you're obligated to take it.
If it were me, I'd tell them I need a sit down and walk me through the books. Then I'd tell them you want a sharing agreement - some defined % of revenue (very specific) to run the agency for them for 1-2 years. You get to make all hiring and firing decisions. You get a production % all new and penetration revenue. I doubt they'd be willing to agree to pay for technology upgrades if they're walking out the door. If you're able to turn it around in that timeframe then buy it. If not, there are other agencies out there that will. I wouldn't agree to buy this business today, unless they're willing to give you a stupidly low number to sell. And even then, I'd be very cautious about what skeletons you haven't found yet.
Good luck! 🤞
Message me if you would like a referral to MMA
My firm specializes in the insurance sector of investment banking. Please DM and I’m happy to walk you through some options for growth, partnership, and addtl market insights of what firms in similar position are doing.
Is the agency open to being acquired? These are often the growing pains we hear when an agency is looking to sell. Our model is a little different but happy to share my experience in a DM if you are interested in learning more.
Is your family willing to invest money into it?
Rising Star
Unfortunately, this goes well beyond the support a fishbowl thread can provide. Please DM me if any of this jargon is not self explanatory (sorry in advance!). The fact that your brokerage hasn't shut shop yet means that it's making money (or losing it very gradually).
- By 'run', insist on receiving part/full ownership of the brokerage and definite execution powers too. The worst succession plans usually have the incoming generation second-guessed by the outgoing one. Keep them on as advisors for the hand-over of relationships. A 2-3 year earnout will align their incentives with your success
- It's good that you've been close to the customer end until now. Please don't forget that carrier/MGA and operational relationships are equally important
- Cash flows and cash management is something you may want to check before agreeing to take over. If family members pay themselves salaries, bonuses and dividends, you may want to ensure that the payments can be sustained, if expected to continue
- Unless you have good tech to quote, bind and service, talent will definitely need to be a priority. If the burned out (usually, the capable) employees leave, I wonder how the business will function
I will leave you with one general thought: is there potential of personal relationships souring because of the business connection?
Hope that helps