There is no question that buyers demand for independent insurance agencies is high, with multiple buyers competing for every agency that’s selling. This makes it really difficult for small or medium sized to stand out and get noticed. Patriotic Insurance made its first acquisition in 2024, by standing out against a handful of other agencies in the running. For hungry buyers, it's no small feat to come up with a way to stand out, and the way Rob stood out to the buyer was not because he was the biggest or the closest in fact it was largely unintentional.
The Challenge:
For small to medium size agencies who are hungry to acquire, it can be a monumental challenge to not just research sellers but also to stand out in their local buyer pool. Other than Cake, one of the few digital platforms that seamlessly connects buyers with sellers, there are no other data-driven platforms where prospective buyers can browse agencies for sale as easily as we can browse homes on Zillow or view cars on Carfax.
Today’s acquisition activities seem to be driven by seemingly random actions. You can learn about an acquisition opportunity in a private social media private group, a list that you subscribe to, or even by word-of-mouth or cold calling.
Once you find an agency, then your next step should be to find a way to stand out among the possibly dozens of other interested buyers. Why does this matter? Just look at how many immediate responses there are to new social media postings of books for sale. Independent agencies are relationship businesses, and sellers care about what happens to their staff, clients, and the reputation they've built, so you must prove to them that you're the right fit over the multitude of other agencies who are also competing to be the buyer.
The Solution:
Rob identified the agency he wanted to purchase through an approved buyer distribution list managed by his Big I State association, Big I of New York. Agencies that are looking to sell can get on this list by letting their state association know, and the association reaches out to the list of agencies that have indicated that they wish to grow by acquisition to try to match the seller with several potential buyers. The state association will reach out to the potential buyers with very general information; location, makeup, revenue, carrier, mix of business. From there, if the seller is interested, the association will review the list and ask the potential buyers to sign NDAs (non-disclosure agreements) to ensure confidentiality before putting them in contact with the seller.
The trickiest part of this entire process is the seller reviewing the list and deciding which agencies they’re interested in meeting with. Sellers have limited time and often have to be selective about whom they meet with. In this case, buyer selection was done without any contact between the seller and the potential buyers. The only information available to the seller was the agency’s name, owner, and whatever information was available online.
What Rob didn't know at this stage was that the interested buyer visited his website, learned of his background as a veteran, read about his agency's values, and watched a video that showcased his personality and passion for his community. The seller later told Rob that because his website effectively communicated and represented the agency’s identity, they felt like they knew who Rob was and what he stood for without having met him. This was ultimately the key reason why his agency stood out to the buyer during the first stage.
The Results:
Once his agency made it through the first stage, Rob approached the acquisition with a focus on partnership and with a caring mindset. He assured the agency owner that he would take care of the agency’s clients and employees, and that he would make sure to spend time with each team member to get to know them, their families, and what motivates them.
"You want to do business with people you know like and trust. When you give people a way to get to know you, it sets you apart. Make sure your website shows your personality!" - Rob Bowen, Patriotic Insurance