For many insurance agency owners, the Medicare Annual Enrollment Period can be both the most profitable and the most stressful time of the year. But what happens when the strain of another Q4 looms too large and the desire to exit grows stronger?
That’s the position one agency owner in Washington state recently found himself in. At 60 years old, with a well-managed, clean book of business and a growing sense of urgency, he decided it was time to explore his options. The question wasn’t if he wanted to sell. The real question was how to exit without leaving his clients behind or leaving money on the table.
This solo agency owner built his business around Medicare Advantage and Medicare Supplement plans, which now account for 92% of his revenue. The remaining 8% is a mix of life insurance, long-term care, and ancillary products like hospital indemnity and dental.
Working from home with no employees and zero overhead, the agency is lean and highly efficient. With $165,552 in revenue in 2024 and a projected $172,000 in 2025, the book is consistent, profitable, and deeply personal.
“If I don’t like a client, I fire them,” the owner said. “So, everyone in my book is a good person, and they depend on me. I still pick up the phone after hours.”
The business is service-driven, well-documented in CRM software, and positioned for a smooth transition.
The owner wasn’t just casually considering an exit he was actively trying to avoid another grueling Medicare season. “I don’t want to go through another Q4,” he said. “That’s 15-hour days for 10 weeks straight.”
He also faced personal pressures at home: both his wife and mother-in-law are disabled, and he recently qualified for VA disability due to back pain. The stress of continuing to run the agency while managing family care had become unsustainable.
His goal was clear: sell the agency before October and fully exit operations. While open to assisting with the transition, he no longer wanted to own or actively write policies during the next enrollment period.
Unlike other acquirers who tossed around vague multiple ranges and unrealistic expectations, Equity Expansion offered a direct, structured conversation. From the start, the discovery call focused on clarity, transparency, and realistic valuation.
“Other buyers said, ‘three to six times revenue,’ but I know that six times means I stay on for three years,” the owner noted. “That’s not what I want.”
Equity Expansion provided insight into real-world deal structures, including both outright acquisitions and more lucrative partnership models with detailed examples and pros and cons of each.
While Equity Expansion specializes in long-term partnerships, they also broker outright acquisitions when it aligns with the owner’s goals. Here’s how the financial options were presented:
Option 1: Outright Acquisition
Option 2: Partnership Model
“The partnership model would be more lucrative, but I’m not interested in staying three years,” the owner explained. “I want to help transition clients but not be writing policies come October.”
Equity Expansion respected this and moved toward structuring a potential full buyout while still testing market fit through their vetted group of acquirers.
The owner’s target exit price was between $550,000 and $600,000, and he was aware that his ask might exceed typical market multiples especially for a solo operation with the principal exiting.
However, his clean operations, loyal client base, and minimal overhead gave him confidence in the value of his book.
“If I could get $550K or $600K, I’d feel great about that,” he said. “But if that’s unrealistic, I need someone to tell me, so I don’t waste anyone’s time.”
Equity Expansion didn’t sugarcoat the math. Based on current industry trends:
They promised to test the market and only follow up if acquirers showed serious interest near his valuation threshold respecting his time and priorities.
A Values-Based Approach to Transition
One of the agency owner’s top concerns was ensuring his clients would be well cared for post-sale. He expressed willingness to personally introduce each client to the new owner provided they shared his values.
“If I stay on through October to do a full transition, I’m okay with that,” he said. “I just don’t want to be the one writing policies anymore.”
This alignment of values prioritizing service, legacy, and client relationships is exactly what Equity Expansion looks for in both sellers and acquirers.
Their model isn’t just about deals. It’s about creating win-win outcomes that protect the book, preserve the owner’s legacy, and ensure clients continue receiving exceptional care.
What Comes Next?
As of the end of the discovery call, Equity Expansion agreed to quietly test the market among select, high-integrity acquirers in their network. If any offers landed near the $500K+ range, they would reconnect for further discussion. If not, they would respectfully stand down and save the owner from wasting his time.
That honesty and transparency are why agency owners turn to Equity Expansion not just for valuations, but for real answers and strategic direction.
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