Agency Perpetuation: A Success Story

“I could have sold this agency on other occasions to competitors. Those competitors may have come in and terminated half of our employees. That’s not what it’s all about.”

Those were the chief concerns when Neil Zabo, owner and seller of The Insurance Group in Knoxville, Tennessee, found himself ready to sell his book of business in order to retire. But then Josh Witt, an employee of the company since 2006, stepped in to purchase the business.

The pair first attempted to work with a local lender. It wasn’t until they were far into the process that they realized the lender didn’t know enough about the Small Business Administration process to guide them through the transaction—and the deal nearly fell apart.

Enter: Live Oak Bank. Watch Zabo and Witt explain how a loan and help from Live Oak Bank made for an easy transition:

Though it may feel overwhelming, perpetuation planning is not a mystery—and planning is the foundation of success. That includes creating and executing a strategy for the orderly transition of your business to a new owner.

The key variables are the same: Find a qualified and compatible purchaser, such as a colleague or staff member; structure and price the deal appropriately; and manage the transition smoothly. And remember: It’s essential to use the time prior to the transition to teach your successors the ins and outs of your agency.

Every agency perpetuation needs capital. Your capital is the foundation for your future growth and your protection during economic downturns. It empowers you to do a lot more than keep the lights and computers on. Live Oak’s insurance lending division offers specialized financing in all 50 U.S. states at attractive rates. Insurance professionals use Live Oak’s capital to acquire agencies, recruit new producers, execute perpetuation plans, refinance and more.

Get more information about Live Oak’s competitive insurance lending product today. 

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