How a Kansas Family Agency Turned a P&C Distraction into a Win

In the ever-changing world of insurance, staying focused can be a challenge especially when your agency ends up juggling two completely different businesses. That’s exactly the situation a three-generation family agency in Kansas found themselves in. After decades of success in Medicare and life insurance, they made a strategic decision to acquire a property and casualty (P&C) book. Three years later, they weren’t sure if they’d made the right move.

So, they turned to Equity Expansion for clarity and for a path forward.

From Trunk of a Car to Multi-Line Growth

Based in Southeast Kansas, this family-run agency started with a classic American story: the owner’s father founded the business in 1978 with little more than hustle and a vision. When the current owner joined in 2012, growth accelerated especially in life, health, and Medicare products. Over the past 10 years, the agency has also produced $5–8 million annually in fixed indexed annuities and built a loyal client base through community-based financial seminars.

Six years ago, the owner’s son joined the business, and they began looking for ways to expand their reach. One move: acquiring a P&C agency with about $3 million in premium. It seemed like a smart diversification play.

But reality proved more complicated.

“Sometimes it feels like the dog that catches the car,” the owner admitted. “You chase it, catch it, and then don’t know what to do with it.”

Two Businesses, Two Worlds

Although the agency had successfully integrated the P&C book which now generates about $350K in revenue it never became a true growth focus. The team’s heart remained in Medicare and life insurance.

“Our core is Medicare. The P&C side just never felt like us,” the owner explained. “We’ve mostly been servicing the book instead of growing it.”

The owner and his son began evaluating their options: Should they continue running both sides of the business? Or should they double down on what they do best while still maximizing the value of their existing P&C book?

That’s when they connected with Equity Expansion.

Why They Explored Partnership

Their goals were clear:

• Offload the P&C operations to free up time and energy.
• Ensure a high-quality transition for P&C clients and staff.
• Continue growing the Medicare side but with stronger operational support.
• Explore financial opportunities that could reward both generations.

“We’re not looking to retire,” the owner said. “We just want to be in the seats where we can grow without wearing every hat.”

How Equity Expansion Helped

Equity Expansion offered two distinct paths forward:

1. Strategic P&C Offload

Equity Expansion identified a potential buyer with operational infrastructure just 20 miles from the agency’s location. This buyer could “book roll” the P&C policies into their existing systems while preserving client relationships through a thoughtful transition plan.

Estimated transaction value:

• Gross Revenue: ~$350K
• Likely Adjusted Valuation: ~$290K–$300K to account for retention risk
• Expected Multiple: ~0.75–0.85x revenue for an outright acquisition

The result? A responsible exit from the P&C business with cash on the table and no more operational distraction.

2. Medicare-Focused Partnership with Equity Upside

Alternatively, Equity Expansion mapped out a full partnership opportunity that included:

• Operational Support: HR, accounting, payroll, recruiting, IT, and more
• Financial Structure (Example):
  • Total agency valuation: $1M
  • Upfront cash: $800K (80%)
  • Equity rollover: $200K (20%)
• Earnouts: Up to $375K based on annual growth benchmarks over three years
• Equity Growth Potential:
  • $200K rolled equity could grow to:
    • $600K at 3x
    • $800K at 4x
    • $1M+ at 5x over 3–5 years

“People are getting wealthy on equity,” said Equity Expansion. “There’s a difference between being rich from a buyout and being wealthy from equity appreciation.”

For the owner’s 24-year-old son, this equity strategy offered a unique long-term wealth-building opportunity. Equity compounds across recapitalization cycles, potentially multiplying each share’s value every few years.

Cultural Alignment & Generational Planning

From the beginning, cultural alignment was a priority. The family wanted a partner who understood the nuances of working across generations and respected their legacy.

Equity Expansion focused on matchmaking with agency principals who:

• Operate in the Midwest
• Share values around client care and integrity
• Have infrastructure and scale but think like operators

“We’ve done deals where the father takes the upfront cash, and the son builds equity for the future. It’s a win for both generations,” Equity Expansion explained.

Outcome & Next Steps

The agency is now evaluating both tracks:

• Offload the P&C book through a localized acquisition
• Explore partnership for the Medicare business with an eye on equity growth and operational freedom

Best of all, the agency can pursue both options confidentially, with no obligation or fees thanks to Equity Expansion’s upfront modeling and transparent process.

“You’re a free agent,” the team assured the owners. “You’ve built something incredible. Let’s explore all your options and make the right move for today and tomorrow.”

Considering Your Own Next Move?

Whether you’re looking to offload a non-core business line, grow faster with less operational stress, or build a multigenerational legacy Equity Expansion helps insurance agency owners explore every option with clarity and confidence. Schedule your confidential consultation today. No pressure. Just honest answers. Contact Us