Andy and Jessica are bringing the experts to talk about all about insurance, an issue that comes in a variety of forms while selling a business, from workers comp to property insurance for hurricanes.
There can be real price differentials; things can change from year to year since the amount is based on your revenue, so if the company has grown its revenue or employee size, or even in the case that some companies can be underinsured and when is requoted, the numbers can double what the company was paying, affecting the bottom line SDE number and consequently the value of the company. A great insurance broker and partner in your deal is a must!
One of the guests talks about how different industries can be affected when talking about insurance since workers comp is a major insurance expense for some specific companies where employees are exposed to more accidents. In a different scenario, when there is financing involved, the owner is going to need health insurance.
You can't miss this episode, since lots of these topics are not usually addressed, and being informed about the insurance aspect will get you prepared to avoid unfortunate surprises when selling or buying a business.
Listing of the week: Joe Moorman (Richmond). Online company with a niche in the recruitment business, helping people find jobs all over the country. Price: $1.8 million. SBA pre-approved. Great growth opportunity. Call Joe at 757-785-0270 or email jmoorman@tworld.com.
Key takeaways:
[5:39] Michael Drath from Magaya Insurance.
[6:15] SBA loans and life insurance.
[8:50] Every deal has to be treated individually regarding insurance.
[10:07] Flood areas.
[10:57] The hurricane in the box.
[12:25] A case where the bank required flood insurance.
[14:03] Insurance that people should have in business.
[15:10] Protecting your investment through insurance.
[17:10] Deal of the week: Henry Ziff (UK). Small technology business in the beauty industry. £120,000. Seller financing 50/50. A great example of growing through acquisition.
[21:06] Mark Polk, client's advisor for the Buckner Company.
[24:50] Getting to know each client and his particular need according to the industry.
[25:43] The role of insurance in a business.
[28:01] Insurance can affect and even kill a deal.
[31:10] Insurance affects the valuation of a business.
[32:49] Mark Polk gives advice to business owners.
[36:45] Why you should talk with your insurance advisor multiple times a year.
[37:59] Listing of the week: Joe Moorman (Richmond). Online company with a niche in the recruitment business, helping people find jobs all over the country. Price: $1.8 million. SBA pre-approved. Great growth opportunity.
Mentioned in this Episode:
Call us — 888-711-9018
Email us thedealboard@tworld.com
Call Michael Drath at 954-873-7997
Contact Henry Ziff at tworld.com UK or call 0203-911-1059
Call Mark Polk at 303-756-2014 or email mpolk@burkner.com
Call Joe Moorman at 757-785-0270 o email jmoorman@tworld.com
Tweetables:
"When you get an SBA loan, the buyer will need life insurance." #thedealboard #transworldbusinessadvisors #insurance #loan #lifeinsurance
"Insurance is part of the deal, you need it to sell your business." #thedealboard #transworldbusinessadvisors #insurance #deal #business
"Insurance is needed, everybody is vulnerable." #thedealboard #transworldbusinessadvisors #insurance
"A business never goes out of business for something they were properly insured for." #thedealboard #transworldbusinessadvisors #insurance #business
"Insurance can affect and even kill a deal." #thedealboard #transworldbusinessadvisors #insurance #deal #selling #business
