MRL #085- My Firm Was Just Acquired, Now What? (Part I)

Earlier this week Phil N. Skrewd DM’d me on LinkedIn…

“My agency was just acquired. I was promised the opportunity to buy-in, so I guess that’s gone now. I have not been impressed with [insert ABC firm] so far. I know you and Micah came from a big shop and left for a smaller shop. What should I be expecting? Should I stick it out or leave?”

First, let me say…

It sucks to lose the opportunity to buy in.

As anyone with half a brain knows, having equity in something is how you build real wealth. So, I get it. Losing that opportunity stings.

That being said…

Despite all the pot-stirring we do around here, I don’t think being acquired is inherently a good thing or a bad thing.

My answer, as with most things, is it depends.

So, in this week’s letter I’m going to address the first question “What should I be expecting?

And next week I’ll tackle “Should I stick it out or leave?

Sound good?

Ok, let’s get started.

Now, obviously I haven’t gone through an acquisition with all the Top 100 shops.

But, I’ve been through one myself, and I’ve talked to enough other agents who have too, to know that they all pretty much run the same playbook with Producers.

Step 1: They’re going to sell you on all their super amazing “resources”

They just spent a lot of money to acquire you and they need to keep as much revenue on board as possible.

Support staff is another story…

But, at least for the time being, they want to keep all of the Producers.

They’re going to fly in a couple of their big wigs right away and sell you on all their “world class” resources and why you’re going to be able to sell so much more now because you’re on their team.

…And they’re not lying.

If you jump in with both feet and drink the koolaid you can indeed sell more. I’ve seen it first hand, $1M Producers exploding their books after acquisition.

But, to be honest…

The resources they’re selling you on aren’t what really make the difference, in my opinion.

With a few exceptions, everybody’s pretty much got the same stuff.

Their real “resource” is their people.

Going from being at a smaller shop to a bigger shop will dramatically open your eyes to what’s possible.

You’re going to go from sitting in a room with a few $1M Producers…

To being on sales calls with loads of $5MM-$10MM+ Producers.

The influence this will have on you cannot be understated.

You’ve been playing ball in the Minor Leagues, and now you’re playing ball in the Big Leagues.

Unless, you’re just a stubborn ol’ curmudgeon—which there are plenty of in this industry—you can’t help but have it rub off on you.

Step 2: They’re going to “encourage” you to chase bigger accounts

Most will do this by raising your minimum revenue threshold.

Meaning all those $2,500 revenue and below accounts…

They’re probably going to farm them out to a Small Business Unit somewhere else in the country…

And you’re probably not going to get paid on them anymore.

At my old shop they raised our minimum revenue from $2,500 to $5,000.

But, that was generous.

For a lot of the big boys, they raise minimum revenue to $10k-$25k.

Now, not all of them raise your minimums…

But, they all most always encourage you—if not force you—to start chasing bigger accounts.

Again, this is not a good thing or a bad thing.

As always, it depends on what your strengths, weaknesses and goals are.

Step 3: They’re going to change a lot of things

Now, they’re going to deny this up front…

Because they don’t want to rock the boat.

But, believe me…

Whether it’s switching out your agency’s AMS or CRM…

Or merging your office with another one of their acquisitions nearby…

Or hiring/firing people…

Or changing up how and what you can sell…

Or some combo of the above…

Change is coming.

It probably won’t happen over night.

Most likely it’ll be in phases over the 3-5 year earn out period.

But, change is coming.

When I look at the office that I left, now…

It’s a very different office than when I joined it in 2018.

Leadership changes, AMS and CRM changes, people being hired and fired, people leaving for greener pastures, raising minimum premiums, encouraging Producers to adopt a BOR style approach to selling…

I barely recognize them now.

Again, this is not a good or bad thing.

It’s just different.

So, now that you know what to expect…

The next question becomes “Should I stay or leave.”

But, let’s save that for next week.

Fat boy is running out of steam.

But, before I go I have one more thing for you.

If by chance your agency has been acquired and you’re looking to see what else is out there…

I’ve got somebody you should talk to.

Her name is Nikki Brandt and she’s a recruiter friend of mine.

She too, was a Producer who went through an acquisition…

So, she knows exactly what you’re going through.

And maybe, just maybe she can help.

No promises, of course.

But, definitely worth a 20 minute discovery call.

If interested, here’s a link to book time on her calendar.

She’s a very busy lady, so please don’t post and ghost on her.

Serious inquiries only.

Ok, that’s enough out of me.

Here’s the link to what we’re selling.

See you next Sunday for Part II.

Kick ass take names,

Maximus F. Revenue IV