The Better Way to Retire from Insurance Than Selling - One Texas Agency Owner Thinks So

After decades of managing the day-to-day demands of their independent agency in McKinney, Texas, one husband-and-wife team found themselves at a crossroads. With retirement on the horizon but no clear succession plan in place, they were exploring their options: sell the agency outright, continue managing operations until burnout, or partner with someone who could help them scale down while building more wealth.

Their agency had grown steadily since 2012, generating around $600,000 in annual revenue on a $5 million premium book, with a lean team consisting of the owners, a long-time staff member, a virtual assistant, and a life insurance producer. But the couple was ready for something different. "We're not getting any younger," the agency owner said. "We’re looking at our options. Maybe it’s time to stop sinking more money into the agency and start thinking about how to exit on our terms."

Why They Considered a Partnership Instead of a Sale

Like many independent agency owners, they had been approached by local buyers over the years. But those offers typically boiled down to one thing: a one-time cash payment and a fast exit.

That’s not what they wanted.

What they were looking for was a way to transition over time while reducing the burden of running an agency and maximizing the value of what they'd built.

That’s when they discovered Equity Expansion, a firm specializing in insurance agency partnerships, M&A, and long-term growth strategies.

The Equity Expansion Partnership Model

Instead of pushing a sale, Equity Expansion proposed a partnership model tailored to agency owners approaching retirement but not quite ready to walk away. Here's how the model works:

1. Operational Relief

Through a partnership with a larger insurance platform, the agency could offload the back-office burden. That includes:

• HR and recruiting: Full access to a dedicated recruiter to source, screen, and present qualified CSRs, producers, or admin staff.
• Accounting support: No more dealing with payroll, reconciliations, rent, or agency bill statements.
• Compliance & legal: A full HR and legal team available to handle PTO, employee issues, or potential claims.
• Carrier access & licensing: Help expanding into new markets and carriers, including support to grow commercial lines in an area they loved but struggled to expand.

2. Financial Structuring Built for Retirement Goals

The financial strategy wasn't a buyout, it was a wealth-building plan. Based on their agency’s performance, Equity Expansion proposed a deal structure that looked like this:

• Estimated purchase price: ~$2 million based on EBITDA and revenue.
• Upfront cash: 80%, or roughly $1.6 million, paid at close.
• Equity rollover: 20% (about $400,000) reinvested into the larger parent agency, with significant potential upside.

Why keep equity? Because that $400K could be 3–5x over 3–5 years, offering a potential second payday of $1.2M–$2M+.

3. Earnouts & Continued Compensation

In addition to the purchase price:

• Earnouts were available for year-over-year growth.
• The owners would stay in place, with custom compensation packages.
• Their long-time staff would also remain, minimizing disruption.

A Cultural Fit That Mattered

Equity Expansion doesn’t just broker deals they vet partners thoroughly.

Each potential partner must pass three filters:

• Character: How do they treat staff, clients, and culture?
• Operational Fit: Can they relieve the pressure points unique to the agency?
• Financial Integrity: Are they offering a deal that reflects the true value of the business?

Equity Expansion only introduces vetted partners who meet these criteria. “We’re not here to box anyone in,” they explained. “You won’t sign exclusives. If it’s not a fit, that’s okay, we want what’s best for you.”

Why It Made Sense for the McKinney Owners

The agency owners were initially skeptical, having been pitched before. But the more they learned, the more the model resonated.

• They could stay involved for 7–10 more years without burning out.
• They’d take home $1.6M immediately, securing their retirement.
• The equity rollover could double or triple given them a second, potentially larger payday.
• Their team and legacy would remain intact.

They didn’t have to go it alone. And they didn’t have to sell everything they’d built to move forward.

Explore Your Options with Confidence

If you're an agency owner generating $500K to $2M in annual revenue, there is a path that lets you scale down and not sell out. Equity Expansion helps agency owners like you keep working, reduce stress, and build wealth without sacrificing control. Schedule a confidential call with our team to learn more.