How Does It Work?

When we bring an agency into our Premier distribution we look at providing the agency owner all cash, all stock, or a combination of cash and stocks. You can still be an owner in the mother company and come to work every day and be really active. The partial buyout is perfect for somebody who says, “You know what? I love my company. I love my company name. I love being president of my company, but I still can’t compete. I can’t create the value-add and some of the other perks that the big agencies can do.”

It could be that you’d grow so much faster if you just had the capital, but you can’t get a line of credit. These are the situations where we love to step in and buy 50 percent of their agency. And almost all the time when we buy 50 percent, the owner will make more money owning 50 percent than they did owning 100 percent.

Besides retirement and fear of regulations,
what a
re some other reasons why somebody would want to consider a merger or sale?

One example is people whose companies didn’t grow to the size they wanted or who can’t give their staff what they had envisioned. So they sell or merge with us on the condition that their employees stay on for a two- to five-year period. They’re keeping their people, they’ve still got an important role. They may not be wearing nine hats anymore, they may be doing one or two things, but they’re still key to the success of the company, and they then have achieved that goal of being part owner of something that’s going to be big.

Go to our REQUEST INFORMATION page to investigate this opportunity further by requesting a personal follow-up call.

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