| LEGAL MATTERS |
Whether buying or selling, agents have
several factors to consider
By Jennifer McDaniel
T
he phone in Chet Buchman’s
office is ringing more often
nowadays.
As a business adviser, Buchman,
a managing partner at Swindoll,
Janzen, Hawk & Loyd, a certified
public accounting firm with offices in
McPherson, Hutchinson and Wichita,
works closely with individuals and
businesses needing guidance on
achieving their goals.
But today, he is working even more
frequently with insurance agents
interested in either acquiring new
agencies, or those wishing to retire
and sell their business. With baby
boomers moving closer to retirement,
the market is ripe. Even so, Buchman
advises there are several factors to
consider before taking the leap.
“Always important, more than just
the numbers, is the human aspect,”
he said. “As a buyer or seller, you
have to sit down and ask yourself,
‘What is my future?’ What do I want
to accomplish?’ ‘What do I want to
achieve?’ Am I ready?’”
One of the most critical questions to
consider, Buchman said, is nailing
down the second part of the plan.
While this part of the plan won’t be
perfect, and will likely change, it’s
important to have a strategy for the
future. From there, he said, potential
buyers need to consider how the
prospective acquisition fits into that
plan as well as what types of policies
the agency sells.
“Is it commercial? Is it personal, or a
24
blend? What is the right agency for
you? It’s the day-to-day interaction
you have to be passionate about,”
Buchman said. “Even if the numbers
are good, it doesn’t matter if you’re
not passionate about life insurance or
commercial. It won’t work.”
and who’s is handling the accounts?”
Other factors to consider are the
agency’s personality and culture. No
two agencies are the same, he said,
and so it’s important to look at who
the producers are, and who manages
customer relations.
“This also plays into the decision,”
he said. “Is this a community that has
one or t