What If You Had a Crystal Ball?
What if someone offered you a crystal ball?
Would you take a peek at the valuation you could get for your agency? Would you look six, or twelve months out given pending tax rate changes?
Maybe; but wouldn’t there be other, more interesting things to look at?
If you’ve been listening to the prognostications of the media and industry experts two themes emerge: valuations for independent brokers may never be higher, and taxes are bound to increase. In other words, it’s time to sell your agency, and the clock is ticking.
I’ve had a lot of conversations with agency owners about tax rates and their impact on our industry. In every one of my conversations, I suggest that owners should be looking past the immediate urgency of potential tax rate changes and focus on what they want to accomplish. Is it really time to sell out or are you still building?
With BroadStreet, agency leaders are able to monetize a portion of their business now, but they continue to run their business as an owner. In addition to building wealth through their retained ownership positions, our partners reignite their entrepreneurial spirit, they lead their colleagues with operational autonomy, and they continue to build their businesses.
At BroadStreet, we help our partners build long-term sustainable businesses. We use a co-ownership model that continues to build value for our partners over time, and our focus is to help accelerate our partners’ growth, both organically and through acquisitions.
Let’s be clear: we don’t have our heads in the sand, and certainly, the tax rate matters when considering the sale of your business. But we also believe that when you look to the future, you’ll likely look past a valuation multiple and a tax rate, and you’ll focus on the accomplishments.
Please contact me to begin a conversation about what you can accomplish with BroadStreet as a partner. Each one of our Core agency partners is different and we can tailor an investment arrangement designed to meet your unique needs.