The steps to successful agency perpetuation — part 1

The basic principles of any integration plan are the same regardless of business size. (Photo: iStock)

When I read the results of last month’s NU/PIA Independent Agency Survey, what jumped off the page to me was that more than half said they did not have a set perpetuation plan for their agency, and that the Independent Insurance Agents & Brokers of America (IIABA) gets as many as 40 calls a week from agencies that don’t know what to do about their own perpetuation.

In my last column, I talked about several critical reasons why agency M&A deals fail. My last bullet point stated “not having a grasp on the need for a detailed integration plan to allow for a smooth merger or acquisition” as one of the reasons. A good integration plan can lead to successful agency perpetuation.