It’s only natural for an agency owner to want successors to come from within their ranks. Yet few agencies actually have an effective ownership perpetuation plan in place to fulfill that wish.

When an ownership transition is necessitated by death, disability, termination or retirement, the absence of such a plan can be devastating. Poor planning in the areas of valuation, shareholder departure timing, repurchase terms and funding can render internal perpetuation virtually impossible, forcing a sale to outsiders.

Crafting a thorough, seamless perpetuation plan requires expert guidance. Attorneys unfamiliar with the nuances of the insurance industry, however, often draft buy-sell agreements that prove impractical or insufficient. Drafting and implementing a successful insurance agency ownership perpetuation plan requires the assistance of industry professionals in touch with all the vagaries of this important process – professionals like the consultants at Reagan Consulting.

Reagan Consulting has assisted in the formulation, modification, implementation, and restructuring of many perpetuation plans designed to maintain the stability and independence of closely held agencies. Our expert advice is based on our extensive knowledge of and experience with successful perpetuation methods and mechanisms, and our objectivity enables us to see beyond personal issues and focus on what is best for the business.

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