Buying into an independent agency

Jan 10, 2019

  1. plainstrader
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    plainstrader New Member

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    North Dakota
    Recently our agency changed hands and the previous owner sold the agency to his son in law. I have been with the agency 4 years now as a commercial P&C agent. I previously worked on the risk management side of insurance but have enjoyed my time on the dark side! lol Our agency is a small to mid sized sized independent that is well established in the community and has been around for 50+ years.

    I would like to get your thoughts and options on how you might approach a new young owner on buying in?
    What % would be your goal to make the opportunity worth it? If you have any experience going through this yourself I would greatly appreciate your feedback!
    *When I was first approached to come on to the agency the opportunity of ownership was discussed but nothing beyond that.*
     
  2. InsCommentary
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    InsCommentary Guru

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  3. Mike007
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    Mike007 Expert

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    With your experience, why don't you just start your own agency?
     
    Mike007, Jan 11, 2019
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  4. Magicmarker98
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    Magicmarker98 New Member

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    I think the thing you want to think about is what value can you bring to the ownership side of the IA? How good is the relationship between you and the new owner?

    I don’t foresee the owner selling a portion of the agency as there can be a lot of overhead to owning an IA, but maybe taking on a part ownership can allow more capital to purchase other IA books.

    Either way, best of luck to you.
     
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