Although the official word is that the Great Recession ended last year, it's kind of hard to tell, what with all of the unemployment, vacant properties and lack of home sales out there. And it doesn't seem to be getting better anytime soon.
Ever just think, "Oh, the hell with it. I'm selling the agency and getting into a real growth industry, like bedbug remediation or reality TV!" If you're of a certain age, the temptation to simply retire–to sell the business or leave it to the kids–is probably irresistible.
Is it a good idea? It all depends on who you talk to, as AA&B discovered in researching this month's feature on agency mergers and acquisitions. Some consultants say they're seeing more activity than ever, especially with the possibility of the Bush-era tax cuts expiring. Others caution that unless you absolutely have to, selling your agency now will net you much less profit than if you sit it out and wait for the economy and the insurance market to improve. Read what five experts have to say about the current state of M&A in the story.
And you might want to give selling a second thought after reading about the winners of this year's Commercial Agency Awards for Excellence. Here are the stories of independent agencies that are truly doing things right.
Things aren't always great for these winners. Like you and everyone else, these agencies have taken some serious body hits from the recession and the soft market, as a peek at their year-to-year revenues will attest. All of them started out much smaller, with a much narrower focus, before wise leaders decided to take them into another direction. IMA Financial Group was just a small agency in Wichita before committing itself to regional growth. Eagan Insurance Agency, based in Louisiana, has had more than its share of headline-making problems, including hurricanes and a massive oil spill. AH&T Insurance leveraged its technology to compete with bigger firms and grew revenues in spite of the soft market. Hugh Cotton Insurance expanded from its agricultural roots to specialize in creative program business. And Lapre Scali & Co. used the soft market as an opportunity to grow through acquisition.
In the end, their creativity, resilience and dedication to the future are getting them through these tough times and putting them on solid footing for some real growth when the recession and the soft market recede.
In the midst of college football season, it's a good time to remember the words of the luckiest guy at Notre Dame, Rudy Ruettiger, who once said, "It's always too soon to quit." Our agency winners didn't, and neither should you.
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