Developing your transition strategy involves many items, but understanding your source of profit is critical to any option. For example, if your primary profit segment is declining in size (e.g., corporate-owned life insurance), your strategy would be different than if it were growing (e.g., retirement planning).

Recognizing the financial implications of each of your business segments may dictate your transition strategy and its implementation timeframe.

Additionally, the developed information can also be used as support for a bank loan or used to attract a buyer. Every agency is different, but long-term value generation is central to all and should be considered when making the final decision of agency transition.


Reproduced from National Underwriter Life & Health/Financial Services Edition, November 11, 2002. Copyright 2002 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.