How to Get Buy-In When an Agency is Bought Out

Like so many other independent agencies, Kapnick Insurance Group has used acquisition to fuel growth. As opposed to corporate takeovers, it seems a more ideal solution when one privately owned company can simply absorb another—while maintaining similar business approaches based on community, innovation and responsive client service.

But it does create a marketing challenge, and I’ve had a front-row seat to the process during three recent acquisitions by Kapnick.

In 2009, Kapnick acquired Ufer & Co—a third-generation, family-owned agency with strong community roots in Ann Arbor, Michigan. Its founder, Bob Ufer, was a local legend—the charismatic lead broadcaster for the University of Michigan Wolverines.

Although we rebranded Ufer with the Kapnick logo, we gave thoughtful consideration to salvaging existing community connections. With a bit of creative foresight, Kapnick seized a unique branding opportunity by officially naming its newly remodeled office space in Ann Arbor the “Ufer Building.”

The result wasn’t a traditional marketing tactic, but it fueled community conversation and reinforced the inherent respect Kapnick held for Ufer’s enduring and valuable heritage.

The greatest factor to marketing success? Recognizing the agency has both an internal and external audience. Employees at both the parent and the acquired companies are sure to have initial reservations, and it’s up to the marketing team to highlight the benefits and be the mediator for concerns over job security and operational change.

For clients, the task is often simpler, requiring demonstration of how the two companies align, how their similarities will lead to a seamless transition and why the added expertise and capabilities will deliver better service and protection.

Here are a few tips to keep in mind:

• Know your audience. Take the time to understand and address their concerns.
• Share the story internally with as much transparency as possible.
• Recognize that there may be initial mistrust. Don’t dismiss input from the acquired agency. Work to absorb—rather than outright delete—its marketing messages and material.
• Respect the heritage of both companies.
• Be patient.

It will take time—in some cases more than a year—but stakeholders will come to see that the sum total of the union is greater than they ever expected.

Rene Carpenter is Corporate Communications Manager for Kapnick Insurance Group in Adrian, Michigan.