Acquisitions for Agency Owners: Remember How Important Your People Are When a Buyer Comes Knocking

People are the most important factor we consider in every acquisition, followed by company culture and finances. That is why supporting mental well-being in the workplace is a top priority for Brown & Brown. We believe that prioritizing the overall health and well-being of our teammates results in healthy teammates who can better support their families, communities and customers, which is critical to our continued success as a company.

Last month’s initiatives Mental Health Awareness Month we saw our team participate in guided moving meditations, host an interactive event on the power of good sleep with Dr. Angela Holliday-Bell, and more. These activities were a way for our team to recognize the challenges faced by more than 1 in 5 American adults suffer from a mental illness and an important reminder that people matter – in life, in work and in the acquisition of wealth.

If a potential buyer is more interested in who they can do without than in understanding the strengths of your team, that should be a serious red flag. Run away if you find yourself facing a buyer focused on cost synergies and staff reductions.

Insurance is a relationship-based business

People are the most valuable asset in an agency – their industry experience, business knowledge, and relationships with clients and carriers should be respected. Our teammates interact with our clients on a regular basis, and these interactions play a significant role in maintaining the success of the business.

Here are three key ways to prioritize team members during the acquisition process:

Long-term vs. short-term thinking

Making cuts to a team’s roster is often a result of short-term thinking.

Find a buyer who understands the importance of hiring and retaining talented team members. When team members are no longer needed in their current roles after an acquisition, the company must ask itself how to best utilize their talents throughout the organization.

Trust in carriers and customers is of great importance

With every acquisition comes change, including the potential for a name change or relocation of the agency. Suppose there are also personnel changes. In that case, the client has to accept the name change or relocation while also enduring a bigger blow: “Sorry, you’re no longer with Sally because she left.”

What will the customer think?

Connections are often what keep customers during an acquisition. When a customer has a history of working with the same person who has always looked after their interests, and that person assures them that the new changes are positive, they are more likely to stay. If that trusted connection disappears, they are less likely to stay because they have lost that connection.

Happy and healthy team members perform at their best

A team that believes an acquisition is a good opportunity is a team that will meet the expectations of its customers, carriers and new buyers.

When researching potential buyers for your business, ask yourself the following questions:

• • Do you maintain long-term relationships with your teammates?
  • What support have you provided to team members regarding their overall health and wellness, brain health, diversity and inclusion, enhanced prosperity, and other benefits?
  • Can you describe your company culture and how important it is to your business?

Actions matter

Every leader says they care about their people, but not every leader lives up to their words. Look for a buyer who doesn’t treat people as objects to get the best results. Look for one who demonstrates positive intentions and shows how they are helping their people stay healthy and grow in their careers. These actions don’t always align with the best short-term company results, but they often produce lasting gains that reinforce success in the long term.

Want to speak to our acquisitions team?
E-mail (email protected) or contact us directly below.

Vaughn Stoll Senior Vice President and Chief Acquisition Officer (email protected) | (386) 239-8899

Mark Prampero Regional Purchasing Director (email protected) | (386) 239-7292

Acquisitions for agency owners
by Vaughn Stoll, Senior Vice President and Chief Acquisition Officer

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