Guest post by Vaughn Stoll, SVP and Director of Acquisitions for Brown & Brown.
When you first became an agency owner, you probably had no idea what your business would look like five or 10 years down the road.
An acquisition is no different — it’s just another chapter in your firm’s history.
The newest pages haven’t been written yet, and your role after the acquisition isn’t etched in ink. And while you may think you know what you want to do after the sale, chances are that it’s going to change.
Here are five owner acquisition stories that may surprise you:
1. I’ll stick to ‘my neck of the woods’ but would like to still expand in some way.
A wholesale business owner wanted to make an impact on a bigger scale, beyond his local Texas business post-acquisition. But, once acquired, he realized he was most fulfilled by the work he did in his local community. Ultimately, he found an opportunity with Brown & Brown to do both: His focus was primarily on the local office which he expanded throughout the Texas region into several surrounding states, but he then took on a leadership advisory role for the entire region, where he was able to mentor other leaders from nearby offices.
Lesson learned: Let what drives YOUR passion guide you towards the most fulfilling post-acquisition path and allow yourself some initial trial and error. Plus, value your experience and leadership abilities.
2. I’m ready for my team to take the reins.
A $25M EB firm owner planned to continue growing the business after selling. But he started to notice leaders in his company who wanted and needed to grow. So, he decided to move entirely out of his firm’s local leadership and promoted from within to fill these roles. He took on a new role as a national senior EB leader with Brown & Brown. Selling allowed the team more responsibility within their organization, and the business has since grown to $100M.
Lesson learned: Clear succession planning enables you to jump to a new role earlier and allows for promotions from within.
3. I’m not ready for a change—yet.
The owner of an $11M EB firm wanted to stay in his current role long enough to accomplish significant growth for his local business before making a change. He stayed in the same role for eight years post-acquisition, growing the firm’s revenue to over $50M. Once he accomplished that level of growth, he transitioned into a national senior leadership role within Brown & Brown where he mentors other leaders across the country.
Lesson learned: Have direct conversations with buyers about your intention to stay with your local business long-term after the acquisition if this is important to you.
4. I want to switch gears.
A small firm owner came into the acquisition with the intention of going back to being a producer. But he chose to lead an office instead when that opportunity emerged. After several years as an office leader, he realized he missed the ability to focus on being a producer, so he focused on growing his book of business from $1M to $4M. Now, he enjoys a sizable income and has the work-life balance he was looking for in this final stage of his career.
Lesson learned: Your story may take multiple turns, so look for buyers with flexibility. Consider those who listen to what you want and can offer different roles based on your goals. Avoid rigid buyers that try to pigeon-hole you into one lane post-acquisition.
5. I thought I knew what I wanted.
A $4M small- to middle-market personal and commercial lines family brokerage approached acquisition with a plan for the parents to retire and the daughter to succeed as CEO. The daughter came in wanting the independence to run and lead her own office. Soon, that changed.
She joined forces with several other locations and became a P&C division leader over a much larger team with more expertise and resources than she had access to before. This opened the door to more growth opportunities for her, her team and her customers.
Lesson learned: Be open-minded about what your post-acquisition role will look like, because there might be new opportunities for growth that you couldn’t have imagined. Weigh the pros and cons of different paths, not just the first one that comes to mind.
There’s no one-size-fits-all
Each of these owners wouldn’t have written the story the way it actually unfolded and then would have been disappointed without the ability to pivot. Entertain different options and stay open-minded about your plans.
If you’re ready to turn the page in your firm’s story, reach out to our team so we can write your next chapter together, in pencil.
Interested in speaking with our Mergers & Acquisitions team? Email Jimmy Curcio or acquisitionsdept@bbins.com.
This material has been prepared for general informational purposes only, is intended to apply generally rather than to any specific company and presumes appropriate discretion will be exercised regarding any particular situation.
