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Flexible Perpetuation & Meaningful Equity Retention

Flexible Perpetuation & Meaningful Equity Retention 2560 1709 nickb@startupselling.com

A Better Alternative for Smaller Agencies: Flexible Perpetuation & Meaningful Equity Retention

The world of insurance has entered a new era. Large brokers have begun to acquire smaller agencies at a record pace. But not all acquisitions are created equal. In most cases, smaller agencies get totally absorbed into their new parent organizations, with the previous owners (and often management) either retiring or assuming new roles, submitting to new priorities and standards of corporate culture. For some brokers, this works well. For many, it’s a rigid structure with an abrupt transition – an imperfect fit at best.

What are the alternatives to complete transfer of ownership and identity? Some smaller agencies will choose to remain fully independent, but their limited pool of resources will make it increasingly difficult to compete with the ever-growing players around them. There is, however, another strategy for retaining a degree of independence and identity while also remaining relevant and competitive.

Unlike most brokerage acquisitions, Vantage leverages flexible perpetuation to enable partial sale, allowing for continued direct ownership, share in future profits, preserve day-to-day operating autonomy, and benefit from capital investments, and gain access to M&A capital and resources.

To break it down:

  • Entrepreneurs sell a majority stake in their agency and retain a direct and personally meaningful minority equity position
  • We provide investments in talent, technology, and infrastructure that are determined and implemented collaboratively
  • Our non-intrusive operating model empowers partners to continue directing day-to-day operations with brand, principles, and standards unchanged
  • Opportunities abound for cultivating organic revenue and margin-enhancing synergies through collaboration with other platform partners

Integrity, transparency, respect, and collaboration form our core values, and differentiate the Vantage model from more traditional, less flexible, and often less effective mergers and acquisitions.

To learn more about Vantage and your options in tomorrow’s brokerage marketplace, connect with us today!