One Agency Owner Hit Pause but Kept the Door Open

In a small city in North Dakota, a seasoned agency owner with more than 25 years in the business is navigating a unique challenge: how to plan for the future without stepping away from what he’s built. With a loyal book of employee benefits clients and a lean operation consisting of just himself and one account manager, his business is stable but the future is uncertain.

At age 56, he’s still passionate about the work, but also keeping an eye on legacy, scale, and what role his son currently just starting college might play down the road.

His question: Is a partnership the right move now, or is it something to revisit later?

A Solid Agency with Limited Complexity

This North Dakota agency isn’t weighed down by inefficiencies or bloated overhead. The owner runs a streamlined operation with just two employees, strong carrier access, and solid client retention. He’s proud of what he’s built and sees himself staying active in the industry for another 10 years or more.

But with one eye on the future, he's considering scenarios: Will his son eventually join the agency? Will growth stall? Will his lean team be enough to keep up with evolving client needs?

At this stage, he’s not looking to sell but he’s open to understanding what a modern agency partnership might offer.

The Trigger: Reengagement Sparked by Interest from a Partner

Equity Expansion had previously spoken with the owner back in 2024. At the time, he wasn’t ready to make any moves, but a recent pipeline review changed that. A strategic partner in Equity Expansion’s network identified this agency as a strong cultural and geographic fit and requested an introduction.

That prompted a follow-up discussion and a new chance to explore what partnership could mean, not just someday, but potentially sooner than expected.

Unpacking the Offer: A Financial Model That Keeps the Owner in the Game

Despite initial skepticism, the agency owner was open to hearing the structure and what he heard intrigued him. The model presented by Equity Expansion focused on growth through partnership, not acquisition and retirement. Here's how it broke down:

• Sample Purchase Price: $1 million
• Upfront Cash: 80% or $800,000
• Equity Rollover: 20% or $200,000 reinvested into the partnership
• Earnouts: Bonus payments tied to year-over-year agency growth
• Ongoing Ownership: Maintain autonomy and control while leveraging shared resources

This model allows agency owners to “take chips off the table” today while rolling forward equity in a larger entity benefiting from future value creation without giving up control or legacy.

What Makes the Equity Rollover So Powerful?

Equity Expansion emphasized that the real wealth isn’t just in the upfront check it’s in the stock. The partner agency behind this opportunity had grown from $5 million to $90 million in revenue in under four years by partnering with independent agencies and supporting their growth.

• Projected Stock Growth: 4–5x over 3–5 years
• Second Liquidity Event: Potential to cash out again or reinvest
• Compounded Value: Multiple equity cycles can generate retirement-level wealth

As Equity Expansion, explained:
“The upfront cash can make you rich. But the equity done right that’s what makes you wealthy.”

The Cultural Fit: Entrepreneurial Freedom with Operational Support

One of the owner's hesitations was around autonomy. He’d been his own boss for decades and didn’t want to suddenly report to someone or lose control. Equity Expansion made it clear: this is a partnership, not a takeover.

“You’re the entrepreneur you are today and the entrepreneur you’ll be tomorrow. We’re not here to manage you, we’re here to support you.”

That support includes:

• Accounting and payroll management
• HR and recruiting assistance
• Carrier negotiations
• Tech support and equipment logistics
• Administrative burden relief

Still, the owner felt that much of this support wasn’t a pressing need. He already had accounting help and wasn’t feeling overwhelmed operationally. His question was more philosophical: Does this really change how I serve clients or grow long-term?

Not Ready But Not Saying Never

After a thoughtful and transparent conversation. He appreciated the opportunity, found the model sound, and even said the equity model “makes sense.” But without immediate operational pain and still exploring whether his son might join the business he decided to hit pause. Equity Expansion agreed to reconnect in a year, keeping the door open for future partnership when the timing feels right.

What This Story Tells Other Owners

This agency owner’s story is a reminder that partnership isn’t about pressure it’s about preparation. Many owners aren’t looking to exit today but want to understand their options for the future. Equity Expansion’s model offers:

• A path to create wealth without walking away
• Operational freedom without micromanagement
• A long-term growth runway with short-term financial reward

For some, the time is now. For others, the right time is still around the corner.

Ready to Learn What a Partnership Could Look Like for You?

Whether you’re five months or five years away from making a move, Equity Expansion is here to educate not pressure. Start with a conversation. See if the model makes sense for your goals. You might not be ready now but the smartest owners are exploring early.