Equity Rollover & Legacy: Why This Insurance Owner Explored a $20M Deal

Many insurance agency owners face a critical turning point in how to secure the legacy they've built while creating future wealth and support for the next generation. For one Central U.S. agency, the answer might be a strategic partnership worth up to $20 million.

Here’s how Equity Expansion helped them take the first step.

 From Growth to Legacy: A Two-Partner Agency at a Crossroads

This independently owned insurance agency, located in the Central U.S., is led by two partners, one nearing retirement, the other in the early stages of a long leadership runway. Over the years, they’ve built a strong, scalable business with a high client call volume (upwards of 130 messages over holiday weekends) and a committed operational team.

But with one partner ready to phase out and the younger partner focused on driving future growth, they faced growing questions:

• What’s the right timeline and structure for a succession plan?
• How do we capitalize on our agency’s value today without sacrificing upside tomorrow?
• Who can support our team operationally while unlocking long-term equity?

Operational Challenges:

• Lack of visibility into financial performance due to delayed reporting from an underperforming accounting firm.
• Burdensome workload for the younger partner who balances leadership and client demands.
• No internal roadmap for a high value exit or equity transition.

These challenges weren’t deal breakers but they were signs that it was time to explore a strategic partnership.

Why This Agency Owner Explored a Partnership with Equity Expansion

“We’re still very interested,” the retiring partner said during the call. While the agency was financially strong, the owners knew they were flying blind on valuation and lacked the time or tools to assess their equity opportunity.

A few key goals stood out:

• One partner needed to gradually step away.
• The other partner needed a roadmap to long-term equity growth.
• Both needed operational support and financial clarity.

They weren’t just shopping for any acquirer. As the owner put it: “We wouldn’t do this unless we really liked and trusted the buyer, especially for Kevin, who will have to work with them.”

How Equity Expansion Stepped In

Equity Expansion took a hands-on approach, led by an M&A strategist who acted as an advocate not just a dealmaker.

Here’s what they delivered:

1. Vetted Acquirers with Cultural & Operational Fit

Equity Expansion doesn’t just chase high offers. They screen acquirers across three critical criteria:

• Culture Fit: “Super good people” who treat employees and clients well.
• Operational Infrastructure: Acquirers who’ve invested millions in back-office systems to take non-revenue tasks off the agency’s plate.
• Financial Capability: Proven track records of paying top-tier multiples and working creatively to reach desired valuations.

As the strategist said, “If they can’t get you to $15–$20M outright, they’ll show you exactly what your finances need to look like to get there.”

2. Equity Rollover & Generational Wealth Planning

One buyer under consideration had grown from $25M to a projected $800M over a 10-year horizon. The equity opportunity for the remaining partner could be worth $20M, $40M, even $60M+ far beyond what a flat cash deal would provide.

“This isn’t about haggling over $15M vs. $17M. It’s about a 10-year runway to equity worth 5x more.”

3. No-Cost, No-Obligation Exploration

Equity Expansion doesn’t charge the seller. There’s no exclusivity contract, no upfront commitment. Their entire model is based on adding value and facilitating the right fit.

“You owe it to yourself to explore this,” said the strategist. “Even if you don’t partner with us, you’ll get real answers with no strings attached.”

A True Partner, Not Just a Facilitator

What set Equity Expansion apart for this agency wasn’t just the deal structure it was the deep alignment with the agency’s goals and values.

• The younger partner wasn’t interested in working for a billion-dollar buyer who had “already won the marathon.” He wanted to partner with someone on mile 6 or 7 where his contribution would matter and equity would grow.
• The retiring partner wanted confidence that “superstar” employees wouldn’t be lost in transition.
• Both wanted a buyer who wouldn’t nickel-and-dime the deal but would “flip the cards over” and structure a win-win.

What’s Next: Exploring a Second Offer to Maximize Value

Equity Expansion’s advisor proposed setting up a second acquirer meeting giving the agency two strong offers to compare. Not only does this provide leverage, but it gives the owners confidence in choosing the right cultural and operational partner.

“Two offers help drive value,” the strategist explained. “We don’t miss it when it comes to fit. And we won’t waste your time.”

Partnership Benefits They’re Now Positioned to Unlock

Here’s what this agency stands to gain:

• $15–$20M transaction potential (pending final financials)
• Equity rollover with high-growth upside
• Operational relief from a PE-backed partner with elite infrastructure
• Flexible exit for one partner, long-term runway for the other
• Trusted transition with cultural alignment and support

The agency didn’t need to fix every internal issue before starting conversations. They just needed a clear partner to walk with them through the discovery process and Equity Expansion delivered.

Ready to Explore Your Own $10M+ Opportunity?

If you're an agency owner generating $500K to $2M+ in annual revenue and considering growth, exit, or succession options, it may be time to explore your equity potential.

Equity Expansion can help you:

• Get real valuations do not estimate
• Meet vetted, culturally aligned acquirers
• Structure deals with real equity upside
• Reduce your operational burden and reclaim your time

Schedule a confidential consultation and see what’s possible for your agency.