This article was adapted from Mr. Walkotten's and Mr. Hamilton's presentation at the 2004 ASCnet Annual Conference, which was held in October in Orlando, Fla. It includes updated statistics provided by the authors.)

At some point, undertaking an acquisition becomes a crucial strategic move for many large, growing agencies. But making a successful play for another agency is a complicated matter. The quality of the seller's management and employees, the characteristics of its clients and its financial condition are only some of the issues that must be looked at. Since acquisitions aren't made in a vacuum, agents also should be aware of what other players in the game are doing.

A good purchase may not only give the agency more business but also provide it with new markets, new producers or other competitive assets. Sellers, whether they stay on after the sale or immediately take the proceeds with them into retirement, also have a stake in seeing that acquisitions are successful.