For insurance agency owners operating in high-growth niches like Medicare, it can be easy to delay thinking about partnerships or exit strategies. But what happens when you're growing fast, managing subcontracted agents, and grooming the next generation while still putting in 60+ hour weeks? That was the case for one agency owner in the Northeast who's built a thriving Medicare-focused shop, doubling revenue since 2019 and onboarding his son into the business.
While he wasn’t actively looking to sell, he was smart enough to stay educated. Here’s how a discovery conversation with Equity Expansion helped him explore what strategic options might look like now or down the line.
This Medicare agency, based in the Northeast U.S., started in the early 1980s. The owner, who originally came from an accounting background, transitioned into the elder care market in 2009 after recognizing that Obamacare would impact his small group benefits book.
By 2019, he shifted his model from house calls to a more efficient and professional brick-and-mortar setup. The results were dramatic:
The business is structured as an S-Corp, with the owner as the only W-2 employee. He’s supported by a licensed in-office agent and a downline of subcontracted agents. During peak season (AEP), he works 100-hour weeks proving his deep commitment to the agency's mission.
“I’m a workaholic. Sixty hours a week for me is probably thirty for the average person,” the owner jokes.
In October 2023, his son officially joined the agency and is already handling client appointments. The long-term vision? The son gradually steps into a management role while the owner scales back but without retiring.
Despite his growth and confidence in the business’s direction, the agency owner didn’t rule out conversations about partnership.
“I’m not looking to sell,” he said candidly. “But I’m also not the kind of person who says no to opportunity. If the right offer comes along, you must consider it.”
He had already acquired a small agency 18 months earlier, which went “very, very well.” Now, he’s in acquisition mode, eyeing a few more possible purchases in the next couple of years. But he took the call with Equity Expansion to get educated on what the broader M&A landscape looks like for Medicare shops like his.
Equity Expansion introduced a three-pillar approach tailored for growth-focused owners who aren’t necessarily ready to sell but want to understand how strategic partnerships work.
1. Operational Support
For owners wearing every hat HR, IT, compliance, service operational support can be game-changing. A partner could:
“We look at what’s keeping you behind the desk that isn’t driving revenue,” Equity Expansion explained. “Then we build infrastructure around that.”
2. Financial Structuring
Equity Expansion outlined a financial model that includes:
For example, a recently closed deal with a similar $1.2M Medicare agency resulted in:
These structures are designed to maximize the value of what owners have already built and give them a second bite at the apple as equity grows.
“That equity has the potential to 3–4x every three to five years,” Equity Expansion noted. “And if your son rolls it forward, the compounding impact could turn $400K into $3–$4 million.”
3. Cultural Alignment
A key part of the conversation focused on values. Any buyer Equity Expansion introduces is pre-vetted:
“We don’t work with egos,” said Equity Expansion. “These are partners who care about people, treat clients right, and are focused on sustainable growth.”
While the agency owner didn’t see partnership as part of his immediate plans, he appreciated the clarity and transparency provided during the call.
“It doesn’t appear to be what I want to do at this stage,” he said, “but I’d like to leave the channel open.”
With 20%+ year-over-year growth and his son stepping in, the agency could realistically double again in the next five years. But even for a growth-focused entrepreneur, knowing what strategic options exist and what others in the space are doing is invaluable.
This call wasn’t about rushing into a transaction. It was about building a relationship, understanding the market, and exploring how partnership might eventually support succession, scalability, or legacy preservation.
And that’s exactly what Equity Expansion aims to provide:
Clarity, not pressure. Expertise, not obligation.
“You’ve spent decades growing this thing,” said Equity Expansion. “We’re just here to help you evaluate every option on your terms.”
Ready to Explore the Possibilities?
Whether you’re actively looking to sell, considering retirement, or just curious about what your agency might be worth, a discovery conversation can be a game-changing first step.
Let’s talk about your agency, your goals, and whether a partnership could help you grow or simply gain peace of mind. Schedule a confidential consultation today.