What Might be the Single most Important
Decision of your Career?
"ALL PROGRESS TAKES PLACE OUTSIDE THE COMFORT
……MICHAEL JOHN BOBAK
What are we going to talk about today?
• Current State of the Market Place.
• Why do Agency owners wait so long?
• Internal vs. External Perpetuation
• What are the important considerations of a Perpetuation Plan?
Current State of the Market
• All projections show that the Consolidation will continue!
• Private Equity is still finding new partners to enter the market.
• Established Buyers vs New Entries.
• Interest Rates Matter.
• Carrier Partners have also helped the Consolidation.
• Agency owners have a strong sense of Independence.
Why do Agency Owners Wait So Long?
• They Love What they Do!!!
• Too Much on their Plate.
• They believe strongly in staying Independent.
• What they are is Who they are.
• They are not sure about how to take that first step.
Internal Perpetuation - Positives
• The Agency Remains Independent.
• The New Management is a known entity.
• Not much changes for the stakeholders.
• It should be easier to accomplish because the parties know each other and they
understand the business.
Internal Perpetuation - Challenges
• The Value and Structure is usually different.
• Do the potential new owners have the ability to purchase the business?
• Do the potential new owners have the ability to continue to keep, grow, and
invest in the business?
• If it is Family are you prepared for Thanksgiving Dinner?
• It usually is not easier because getting through the process can cause hard
• What happens if the new owners fail? The Risk is real.
External Perpetuation -What do Sellers Want?
• They want to take equity off the table. (The more upfront the better)
• They want to remain as independent as possible.
• They want better access to markets for their clients.
• They want security and opportunity for all stakeholders.
• They want a seat at the decision making table.
External Perpetuation - What do Buyers Want?
• Growth, Growth, Growth
• Owners and Management that will continue with the business and want skin in
What is life like after a Sale?
• It Depends!
• Surprising for Most.
• Finding the right Partner.
• Starting off with the right attitude.
• Doing the things in your life that made you successful in your business.
What are the important considerations of a Perpetuation
• Consider what is going on in the market around you.
• Can you remain Independent and Competitive?
• Will the Carrier Partners Support your Effort?
• Are you considering All the Alternatives?
• Understand the Real Value of Your Business.
• Speak to your peers. Especially the ones that have been through the process.
• Understand the risk of not having a plan on all your stakeholder.
• Hire a good Advisor that will put Your interest before their own.
• Speak to your Potential Successors both internal and external.
"THE WAY TO GET STARTED IS TO QUIT TALKING AND
BEGIN DOING." ... WALT DISNEY
Sukay & Associates, Inc.