Over the past year, I've had conversations with hundreds of independent agency owners about succession, growth, and potential transactions.
One thing I've learned is that most owners start by asking the wrong question.
They ask what their agency is worth before deciding what they actually want the outcome to be.
That's understandable. Valuation is important. But in my experience, the owners who have the best outcomes are the ones who first define what success looks like after the transaction closes.
Do you want to retire completely?
Do you want liquidity but still enjoy running the agency?
Do you want to create a path to ownership for a key employee?
Do you want to preserve your brand, your team, and your role in the community?
The answers to those questions often determine the right buyer long before valuation enters the discussion.
Today's Market Offers More Choices Than Ever
Agency owners have no shortage of options today.
Private equity-backed platforms continue to be active buyers. Regional brokerages are expanding. Strategic acquirers are looking for growth opportunities. Franchise models offer a different path altogether.
Many of these buyers are good organizations with experienced teams and proven track records. Many can offer competitive valuations and efficient execution.
The challenge for agency owners isn't finding a buyer.
The challenge is finding the buyer whose model aligns with their goals.
Too often, owners spend months comparing multiples and very little time evaluating what life looks like after closing.
In my view, that's backwards.
There Is No Universal "Best Buyer"
One misconception I see frequently is the idea that there is a universally best buyer.
There isn't.
The right buyer for a 68-year-old owner looking to retire next quarter may be completely different from the right buyer for a 52-year-old owner who still wants to grow for another decade.
Similarly, an owner whose primary concern is maximizing value may prioritize different things than an owner who is focused on protecting employees and maintaining a local presence.
Neither approach is right or wrong.
The key is understanding your priorities before entering a process.
Once those priorities are clear, evaluating buyers becomes much easier.
The Three Outcomes I See Most Often
Most agency owners I speak with generally fall into one of three categories.
1. The Full Exit
Some owners are ready to move on.
They've built a successful business, created meaningful value, and want to monetize what they've built.
For these owners, valuation, certainty of close, and transaction structure often become the primary considerations.
2. The Stay and Grow Owner
Other owners still enjoy the business but would like to take some chips off the table.
They may want liquidity, operational support, access to additional carriers, recruiting resources, or technology that allows them to continue growing.
For these owners, a partial liquidity event may create a better outcome than a complete sale.
3. The Succession-Minded Owner
A third group wants to transition ownership but doesn't necessarily have an obvious internal path forward.
Sometimes there is a key employee who could become the next owner with the right support. Sometimes there is a family member who wants to stay involved. Sometimes there is simply a desire to preserve what has been built for employees and clients.
These owners often need a different solution than a traditional sale process.
The Questions Every Owner Should Ask
Before evaluating purchase price, I believe owners should ask several practical questions.
What happens to my employees?
What happens to my clients?
Will the agency continue to operate locally?
What happens to the agency name and reputation I've spent decades building?
What role, if any, will I have after closing?
How much flexibility exists in the structure?
The answers to those questions often reveal more about a buyer than the multiple itself.
A buyer's vision for the agency after closing is just as important as their offer before closing.
Where Brightway Fits
Brightway is not the right fit for every agency.
But for owners who value flexibility, local relationships, and multiple paths to succession, our model is different from many of the alternatives in the market.
Some owners choose a full exit where the agency continues to be operated locally within the Brightway system.
Others choose our Stay & Grow model, which provides liquidity while allowing them to continue building the business with additional resources and support.
Others are looking for a succession solution that helps create a path forward for the next generation of leadership.
The common theme across each structure is that we recognize different owners want different outcomes.
We don't believe every agency should follow the same path.
The Question That Matters Most
If you're considering a transaction, my advice is simple.
Before asking what your agency is worth, ask yourself what you want your future to look like.
The owners who achieve the best outcomes are rarely the ones who focus exclusively on valuation.
They're the ones who clearly define their objectives, evaluate buyers against those objectives, and choose a partner whose vision aligns with their own.
The highest offer is not always the best outcome.
The right outcome is the one that accomplishes your goals.
Start with the outcome you want — schedule a conversation with Jeff Coluccio, Head of M&A at Brightway Insurance, and we'll help you figure out the rest.