Caveat Venditor – “Let the Seller Beware” (You’re Right to Be Picky When Choosing a Partner)
As we begin the new year, our market remains crowded with buyers seeking to capitalize on the wave of independent agency consolidation.
There is clearly a growing cadre of new entrants. There is also a smaller group, which includes BroadStreet℠, that have been investing in entrepreneurial agencies for decades.
Anyone who is considering taking on a partner in this market is right to be picky. While valuation multiples and purchase price dollars are important, our experience tells us there are many other non-monetary considerations.
When I talk to potential partners about BroadStreet’s℠ co-ownership model, these are common concerns I hear and how BroadStreet℠ uniquely addresses them:
- Growth Opportunities: Our goal is to find partners that have stellar reputations, a well-defined culture and outstanding colleagues so we can enhance their growth organically and through tuck-in acquisitions.
- Operational Autonomy: Our partners retain their operational autonomy. As they should, they are already running successful agencies. They keep their agency names and their community legacy remains intact. Our role is to help them accelerate their growth, create scale and access a national network of business partners.
- Long Term Investment: We support making investments in people and innovative technologies rather than cutting costs that serve only to boost short-term profitability, create disruption and foster uncertainty.
- Leadership Perpetuation: Our co-ownership model is set up to create more owners and facilitate the transition to the next generation of agency leaders. Co-ownership means that the people delivering the growth and innovation benefit financially from their hard work.
The choice of a partner is not a one-size fits all proposition; be sure to prioritize what is important to you and don’t give up until you’ve found it. For nearly 20 years, we have been partnering with agency leaders, as co-owners, to perpetuate their business and maintain their legacy. Please contact me to learn more about the BroadStreet℠ approach.