If you’ve been in the insurance distribution business for any length of time—especially the independent agency world—you’ve witnessed the industry’s steady wave of consolidation.
It’s been happening since the mid-to-late 1990s and continues today. The Top 100 Brokers list changes year after year—not because these firms vanish into thin air, but because of the unrelenting pace of mergers, acquisitions, and roll-ups by larger players.
I’m not here to debate the accuracy of those lists. After nearly 40 years in this business, I can tell you they paint a clear enough picture: The market is in constant motion.
And in that motion lies the question I hear from agency owners time and again:
“Should I grow by building or buying?”
The Temptation of Acquisition
It’s no surprise many agency owners see acquisitions as the fast track to growth. The phone calls I get often start the same way:
“I’m looking to grow—or grow faster—and I think I’d like to purchase some agencies.”
It’s an appealing idea. You instantly picture more clients, more revenue, and a bigger footprint.
But the real question isn’t whether acquisitions are appealing—it’s whether they’re the best path to increasing your value.
Growth for the sake of growth can be a trap.
Measuring Your Current Growth
Before you even start considering an acquisition strategy, you need to assess how you are currently growing.
●Are you bringing in new clients?
●Are you selling additional coverages or products to your existing base?
●Is your growth simply riding a wave of premium increases in certain sectors or lines?
Organic growth—built on the strength of your relationships, sales strategy, and service model—often tells you more about your agency’s long-term potential than the size of your checkbook.
Acquisition vs. Merger: A Different Equation
Another option is partnering or merging with someone who’s already on a faster growth trajectory—and whose agency value has tripled over the last five years.
I’ve seen agency owners try to muscle through acquisitions on their own, only to realize they lacked one critical element: a dedicated team with the time, skill, and focus to see deals through.
And here’s the hard truth:
Finding the right partner is more about culture than it is about money.
Culture Over Cash
When I was acquiring agencies for the bank, we looked at over 300 agencies. We only bought 14.
The biggest reason deals didn’t move forward? Culture.
Financials can look great on paper, but if your values, service models, or client philosophies don’t align, you’re inviting trouble.
Even when the fit seems perfect—financially and culturally—things can still go sideways. That’s why due diligence isn’t just a legal checklist. It’s a chance to spend real time with the owners in different settings, to observe how they lead and manage relationships.
If you cut corners in this stage, you risk far more than a bad investment—you risk the future stability of your agency.
Why “Buying a Book” Isn’t Always Easier
Many agency owners think buying a book of business or hiring a team of producers is simpler than purchasing an entire agency. In reality, it can come with more baggage.
Producers often believe they can take their entire client base with them. But they’ve usually signed non-compete or non-solicitation agreements. Whether those agreements hold up in court or not, the original agency will fight to protect its business.
On top of that, carrier agreements are often non-assignable—even when you buy the entire agency. If the carrier mix doesn’t match, you may not be able to keep certain business. And sometimes clients simply prefer to stay with their current broker to avoid disruption.
The bottom line? What looks simple from the outside can turn into a legal and operational tangle.
The Competitive Landscape
Trying to buy agencies in today’s market means competing with:
● Public brokers with deep pockets and established processes
● Private equity-backed firms who can move fast and offer big checks
● Experienced smaller buyers who have been in the game for years
This is an uphill battle, especially for smaller agencies without the capital, staffing, or acquisition experience to compete on equal footing.
That doesn’t mean it’s impossible. But it does mean you need to approach it with eyes wide open.
What It Really Takes to Grow by Acquisition
If you’re serious about growing this way, you’ll need more than just ambition:
1. Focused Leadership Growth by acquisition must be driven from the top down. It’s not a “side project.”
2. A Dedicated Team You need people solely responsible for identifying, vetting, and integrating acquisitions.
3. Patience and Principles Don’t do a deal just because you can. Bad acquisitions are expensive—financially and culturally.
4. Capital and Equity You’ll need more money than you think, and you’ll likely have to give up some equity to compete.
5. Fortitude Deals take time. Integration takes longer. You have to be willing to stay the course.
When Organic Growth Wins
For some agencies, the best strategy isn’t acquisition at all—it’s doubling down on organic growth.
That could mean:
● Expanding your service offerings
● Investing in sales training
● Improving client retention strategies
● Leveraging technology for efficiency
This approach may not deliver overnight expansion, but it builds a stronger foundation for long-term value—and often at a lower risk.
Why Value Should Be the Real Goal
In the end, the question isn’t just “How do I grow?” but “How do I increase my agency’s value?”
I’ve seen too many owners chase size, only to find themselves with more complexity, less profit, and the same—or even lower—valuation.
Value comes from:
● Strong earnings
● A balanced carrier spread
● A diverse client base
● A deep bench of producers
● Systemized operations
● High retention
● Leadership readiness
Growth that doesn’t improve these fundamentals isn’t really growth—it’s just motion.
My Advice After 30+ Years
Whether you build, buy, or partner, remember:
● The best deals happen when culture and strategy align.
● Every shortcut in due diligence will cost you more later.
● Bigger isn’t always better—better is better.
The insurance agency landscape will keep evolving. Consolidation will continue. And opportunities will always exist for those who approach growth with clarity, discipline, and a commitment to building value—not just volume.
If you’re thinking about your next move, ask yourself the hardest question first:
Am I doing this to get bigger, or to get better?
The right answer could define the next decade of your career—and the legacy you leave behind.
Your Agency’s Value Today is Only Part of the Story.
Knowing if, when, where, and how you’ll perpetuate your agency matters — but it all begins with Why.
Why are you doing this? Why now? Why this path?
The right answer changes everything.
That’s why we built the Legacy & Market Readiness Blueprint. It takes the guesswork out of the equation and gives you more than just a number — it gives you clarity.
You’ll walk away knowing:
● What your agency is worth today
● Whether you’re truly ready to sell, scale, or hold
● The smartest next moves for your legacy and value
And here’s the best part: it’s confidential, it’s complimentary.
If you’re serious about your future, don’t wait. Start with the Blueprint, and let’s get clear on your Why.