Thought Leadership

Success Measured over Decades, not Investment Holding Periods

At BroadStreet℠ we are focused on long-term value creation for our Core agency partners.

It is important to emphasize the distinction, “for our Core agency partners”, because the marketplace is crowded with large-scale consolidators focused on creating short-term value for stakeholders that are completely removed from the business of insurance and risk management.

Opportunities for independent insurance agencies to partner with firms backed by private equity abound. Typically, these firms have a prescribed exit date, whereby they plan to sell, in order to cash in on their initial investment in an agency.

Maximizing the sale usually involves cutting expenses to improve short-term margins in an effort to boost the future sale price. In a sense, this behavior sacrifices the long-term sustainability of the agency, for a short-term financial gain that creates value for only a few stakeholders.

We present an opportunity that looks quite different.

BroadStreet℠ uses a unique co-ownership model to make investments in high-performing agencies without the intention to sell these agencies – ever. We partner with agencies that have an entrepreneurial drive to grow and build their businesses, and as those businesses grow, our partners—as co-owners—participate in the financial upside of that future growth.

Our role is to help accelerate our Core agency partners’ growth. We support that by making investments that drive long-term value creation such as:

  • Investing in new technologies;
  • Hiring and developing new producers;
  • Accelerating and enhancing our Core partners’ tuck-in acquisition strategies; and
  • Providing creative and unique solutions for leadership succession and ownership perpetuation.

We currently have more than 350 colleagues who are also equity owners. We are all aligned with the same goal in mind: build a long-term sustainable business that creates value for all of our partners and opportunities for the next generation of independent agency leaders.

Our success is measured over decades, not investment holding periods.

It’s different when you’re a partner.

Please contact me to learn more about BroadStreet℠, our co-ownership model, an our long-term approach.

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