Thought Leadership

It’s not an “Either / Or” Decision: Our Co-Owners Participate in the Upside of Agency Growth

BroadStreet’s℠ unique co-ownership model continues to attract entrepreneurial and growth-minded agency owners who are looking for a partner to accelerate their growth.An infographic summarizing the benefits of partnering with BroadStreet Partners

In the current environment, agency owners are regularly considering offers to sell their business and consolidate with another agency. At the top of the list of considerations are two questions:

  • Do I either cash out now?; or
  • Do I wait, continue to grow independently, build agency value and personal wealth?

Our unique co-ownership model takes the question of “either / or” off the table. It’s not even a consideration because BroadStreet℠ creates the opportunity for agency leaders to simultaneously:

  1. Monetize a portion of the business that they’ve built
  2. Acquire a capital partner to help accelerate future growth
  3. Continue to build personal wealth by maintaining a significant ownership position in a business that they continue to run.

Simply put, our partners participate in the upside of the value that they create as they continue to grow their businesses.

Here’s just one example:

We partnered with an agency 4 years ago when they were $10 million in revenue. They have since grown to $25 million through a combination of organic and acquisitive growth.

  • The annualized growth in value of this partner has been over 28%
  • Their average annual cash distributions have increased incrementally each year.
  • (For some additional context, our partners typically retain about 20%-30% of the agency ownership)

No other potential partner in the market offers wealth-building opportunities like these for agency leaders: the value of our co-owner partners’ equity stakes increase at a rate that is greater than other investment opportunities, and they also receive quarterly cash distributions.

True partnerships work when both partners win; co-owners win together, standing side by side.

To find out more about our approach, I encourage you to contact me to start a discussion.

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