In 2011, the agency owner partnered with a colleague to form a new independent insurance agency. By 2016, their differing visions one focused on personal lines, the other on commercial led them to amicably split. Since then, the agency has flourished under a single owner, with an emphasis on commercial insurance and contractor clients. Licensed in Michigan, Indiana, Ohio, the Carolinas, Iowa, and Missouri, the firm also proudly serves a large Spanish-speaking clientele.
Now operating as a 60% commercial and 40% personal lines agency, the business has grown from a $600K book four years ago to nearly $2M today. With year-over-year growth of 20%, revenue now stands around $225K despite aggregator fees from Iron Peak slightly trimming commissions.
The owner, backed by two experienced 1099 producers and administrative support, had built a strong foundation but was seeking more.
When asked what “success” would look like, the agency owner didn’t hesitate: a $10M book of business supported by a team of five to seven high-performing producers. But with only two producers in place, both relatively new reaching that milestone would take time, hiring, training, and capital.
As the business expanded, so did the demands on the owner’s time:
This bottleneck of operational responsibilities was slowing down growth and limiting the owner’s ability to focus on strategy, production, and client relationships.
While not actively looking to sell, the owner saw value in exploring partnership options. A conversation with Equity Expansion confirmed a growing industry trend: agencies reaching $500K+ in revenue are increasingly partnering to offload operational strain and accelerate growth.
Equity Expansion laid out a vision of partnership that offered:
With no obligation, fees, or exclusivity required, the agency owner felt comfortable taking the next step to assess valuation and alignment.
Equity Expansion’s Director of Finance created a custom financial model using the agency’s real figures:
This equity position, held in a rapidly appreciating partner platform, could 4x in three to five years, turning $100K into $400K–$500K or more. With recap events occurring every few years, owners can realize multiple liquidity events during their continued involvement in the business.
And for those planning to work another 10–15 years like this agency owner the compounding equity value over time can be transformational.
In addition, earnout bonuses were available based on continued growth, along with tailored compensation packages for both the owner and staff. The model preserved the agency’s systems (like their AMS) and allowed continuity in operations and client experience.
While financials are critical, the partnership process with Equity Expansion prioritizes cultural alignment. The agency owner would be introduced only to vetted agency groups aligned with:
Equity Expansion also emphasized transparency: only two team members (under NDA) would access the agency’s financials, and all documentation remained fully confidential.
The goal was not a high-pressure sale, but a thoughtful exploration of whether the right partner could help fulfill the agency’s long-term vision.
A No-Pressure Path to Strategic Growth
As the call concluded, the agency owner expressed interest in continuing the process. With Equity Expansion’s support, the next step was clear:
With no fees and no obligation, the agency owner could evaluate the opportunity on their own terms.
Could This Be the Right Time for Your Agency?
Whether you’re like this Michigan agency owner growing steadily but wearing too many hats or you’re approaching retirement and planning your exit, a strategic partnership could help you:
Schedule a confidential consultation with Equity Expansion to explore what a customized partnership could look like for your agency.