Skip to content
Contact Us

The Perpetuation Crisis

 

When Abigail Whorton joined her family’s agency in July 2018, she and her father, Bill Whorton, agreed to reevaluate their working relationship and the agency’s future in two years. However, by July 2020, Abigail found herself facing an entirely different reality—her father, who had built and led the agency for over 20 years, had suddenly and unexpectedly passed away.

The Challenge

With no perpetuation plan in place, Abigail’s mother became the agency’s owner overnight, forced to decide whether to run the business or sell it—all while grieving.

A sudden leadership transition creates uncertainty across an agency. Relationships drive our industry, and when ownership shifts unexpectedly, the ripple effects impact carrier partnerships, vendor relationships, and internal staff morale. Without a clear plan, employees may feel unsettled, and external partners may begin questioning the agency’s long-term stability.

The Whorton family had a critical decision to make:

  • If they sold the agency, they needed to act quickly. An agency in limbo rapidly loses value as customers, carriers, and staff grow uneasy. If key employees or carriers exited, a potential buyer would face a riskier acquisition, lowering retention rates and, ultimately, the agency’s market value.
  • If they kept the agency, they needed immediate leadership and operational continuity. Without a transition plan, even basic administrative tasks—such as accessing carrier logins, banking information, and payroll systems—became hurdles. The family not only had to process their loss but also step up to keep the business running and growing.

The Solution

On her episode of Insurance Refocused, Abigail shared that her first call was to Kevin Painter, a close friend of her father and his business partner in their network, Southeastern Network Agencies. Within days, Kevin helped the family notify key stakeholders, including carrier representatives, and provided guidance on navigating the uncertain weeks ahead.

While many industry peers offered conflicting advice—some urging the family to sell, others to keep the agency—Kevin gave them the advice they needed most:

“Don’t do anything for a year. Don’t make any big decisions. Don’t sell anything or buy anything. Don’t even change your paper provider. Just let your business run.”

This advice gave the Whortons permission to focus on grieving and stabilizing operations rather than rushing into major decisions.

For their employees, Abigail and her mother recognized that open and honest communication was critical. Just two days after Bill’s passing, they gathered their staff in the lobby of their agency to share the news, reassure them that no immediate changes were coming, and ask for their commitment as the family navigated next steps. Abigail credits this transparency with helping retain staff and maintain stability:

“The staff saw enough alignment between how my father operated and how I operated. That foundation of trust allowed us to move forward.”

Determined to continue her father’s legacy, the Whorton’s chose to keep the agency.

The Results

Five years later, the Whorton Agency is thriving. Under Abigail’s leadership:

  • The book of business has almost tripled in sized
  • The agency has a retention rate of 94%
  • They successfully acquired another agency
  • Have a team of 6 happy team members
  • 58% percent of new business is coming from current client referrals

Additionally, they now conduct regular valuations and have implemented a formal perpetuation plan. This plan includes a structured buyout process for Abigail to transition full ownership from her mother and a first-right-of-refusal agreement with a trusted agency in case of an unforeseen event. Most importantly, the plan is documented and communicated to key stakeholders, ensuring that no one is left navigating uncertainty in an emergency.

The greatest risk to an agency is a single owner without a perpetuation plan. Without a plan, an agency’s value can erode overnight, leaving loved ones and employees in a difficult position. The best way to protect your agency’s future is to have a written, actionable perpetuation strategy in place.