When it comes time for an agency founder to sell, agency aggregators often put the highest dollar figures on the table. But many owners believe it’s “a whole lot better for their legacy to perpetuate the agency with the people who have grown it and have the [client and carrier] relationships that drive the success,” says Rick Dennen, CEO of Oak Street Funding.

And Dennen agrees with that viewpoint. “When you turn the agency over to an aggregator, you’ll have producer turnover, and your retention rates won’t be as high.” Since most producers don’t have the net worth necessary to buy out an owner on their own, Oak Street can step in and help them finance the deal.

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