Running an insurance agency presents a unique set of challenges. You’re not just tasked with...
After 26 years in business and a failed succession plan, one agency owner is rethinking his future. Here's what he's doing next and how Equity Expansion could help when the timing is right.
A Legacy Life Insurance Business Built Across 10 Markets
Based in Nashville, Tennessee, this agency owner built his business from the ground up following a wave of corporate layoffs that disrupted the insurance industry decades ago. What started as a team of 22 life insurance professionals evolved into a multistate operation, with recruiters and licensed agents covering key territories across the Midwest and Southeast including Memphis, Minneapolis, Columbus, Kansas City, and beyond.
With licensing in 45 states and a long-standing reputation in life and long-term care insurance, the agency once operated with 16 W-2 employees and robust premium volume.
“At our peak, we were the third-largest producer in the country for American General,” the agency owner recalled. “Then 2008 happened, and we lost 30% of our revenue overnight.”
Today, the agency runs leaner four W-2 employees, several seasoned 1099 recruiters, and an extensive renewal book. Still, the agency is feeling the effects of time: declining renewal revenue (down 5% annually), the loss of large legacy clients, and the absence of a working succession plan.
The Trigger: A 14-Year Succession Plan That Walked Away
At 65, the agency owner is at a crossroads.
“I had a succession plan in place until he quit after 14 years. I’m not starting over again.”
Despite having no plans to fully retire, he admits the business is beginning to outgrow him or, more accurately, he may age out of the client demographic he serves. While he still enjoys the work and isn’t in a hurry to exit, he's pragmatic: if the right opportunity arises, he’s open to conversations.
He’s not alone. Many insurance agency owners in the $500K–$2M range are navigating similar uncertainties:
- How long should they keep going?
- What happens when key employees leave?
- How do they protect the value they’ve built?
- And how can they plan for the next chapter without walking away too soon?
Exploring Partnership: The Equity Expansion Discovery Process
While the agency is primarily focused on life insurance (about 70%) and long-term care (30%), the owner connected with Equity Expansion to explore broader options.
The firm specializes in brokering strategic partnerships in the insurance M&A space especially for P&C, Medicare, and employee benefits agencies, though they occasionally work with life-heavy shops.
What sets Equity Expansion apart is their approach:
- Operational Relief: Offloading the HR, payroll, IT, and accounting burdens
- Equity-Based Wealth Creation: 80% upfront cash with a 20% equity rollover, which can multiply significantly through recap events
- Long-Term Alignment: Owners stay on in a producer or leadership role, preserving continuity and team culture
“We take nine hats off your head so you can focus on what you love, production, relationships, or vision,”. “The equity rollover isn’t just wealth, it's generational wealth.”
A Deal That Might Be Worth Waiting For
While a partnership could streamline operations and unlock value, the timing wasn’t quite right. The agency’s declining revenue stream, paired with a yet-to-launch product in development, posed valuation challenges.
“If your revenue’s going in the red, you’re going to get paid pennies on the dollar”. “But if you wait, launch this new product, and marry it with the agency’s existing foundation, your valuation could skyrocket.”
The agency owner agreed. He’s developing a product aimed at a potential $5 billion market, expected to bring in $1–2 billion in premium from institutional partnerships. Once operational, this could redefine the agency’s net present value.
For now, Equity Expansion will revisit the conversation in a year giving the owner time to stabilize revenue, validate the product, and plan a more lucrative exit or growth strategy.
Culture, Loyalty, and Legacy Preservation
Beyond numbers, the agency owner emphasized loyalty to his long-term staff some of whom have been with him for 25 years.
“I could’ve cut costs and made more money, but I’ve always reciprocated loyalty.”
Equity Expansion understood the importance of this commitment. Any potential buyer or partner would need to align with that ethos protecting the legacy, retaining key employees, and supporting the owner’s entrepreneurial autonomy.
“But the right acquirer still treats you like an owner. You’re running the agency like before just with support and upside.”
Looking Ahead: The Value of Strategic Timing
This discovery call didn’t end in a transaction and that’s perfectly okay.
It’s a reminder that the best partnerships happen when timing, value, and vision align. Equity Expansion helps agency owners evaluate their options, even when the right move is a year or two away.
For this Tennessee-based life agency, the path forward is clear:
- Stabilize the renewal base
- Launch the new product
- Re-engage with Equity Expansion to explore a deal that reflects the agency’s full value
Ready to Explore Your Options?
Whether you're navigating a failed succession plan, feeling the weight of operational overwhelm, or simply want to understand your agency’s true worth, Equity Expansion is here to help. Schedule a confidential consultation today and learn how the right partner can help you grow, simplify, and secure your legacy.
