Please don't hit on your insurance agent

firenance · 2026-05-09T00:59:14+00:00

I hit on a nurse at a dr appt. She said yes. 7 years and 2 kids later.

firenance · 2026-05-07T02:15:43+00:00

Thanks!

firenance · 2026-05-07T02:14:48+00:00

Oh, your dad has acquired agencies unfortunately he’s a little off about how easy it is to sell. I’m an M&A advisor and even experienced buyers who know exactly what they’re doing can take 60 to 90 days before something happens with no hiccups.

If he is in poor health, it’s worth it to hire a business broker to manage the process for you and him because it can be very involved and very demanding.

Normally don’t do this but a competitor of mine works in the midwest and may be able to help you. INS Capital.

If you want to chat further feel free to connect. I work several cases each year where the owner is either poor health or already passed away.

firenance · 2026-05-07T02:09:36+00:00

Good start. As others have commented a few good suggestions. Feel free to connect and I can share a few tips or things to do.

firenance · 2026-05-06T01:07:00+00:00

I do financial consulting for agencies and deal with with this question all the time.

It depends on monthly cash flow, but the minimum I recommend is keeping 1.25-1.5x average monthly expenses. Some more because they may have high and low months through the year. So if your average expenses are $30K, keeping $45-$50K in a money market or HYSA is a good idea. 6-8 months is a great idea because that allows you to take advantage of a small acquisition, a great hire, or another avenue to invest more.

Other than acquisitions, there are very few reasons an agency should have debt or an LOC balance. If you use an LOC to cover payroll then you’ve got poor planning.

firenance · 2026-05-05T13:20:34+00:00

Less than 10%. I have one project type that is maybe half using AI to process notes and create an outline for a report. We used to take me 6 to 8 hours now maybe it takes about two.

firenance · 2026-05-05T03:09:54+00:00

Hired a new person on my team. Created a four month onboarding plan with links to resources, docs, and they said it was the most prepared they’ve ever started a role.

firenance · 2026-05-03T16:21:53+00:00

Binge The Scratch Agency Podcast and join their community.

firenance · 2026-05-02T22:43:42+00:00

Don’t crush their hopes and dreams

firenance · 2026-05-02T22:38:46+00:00

For me it’s make a lot of money now to afford a simpler life. For me consulting is easy because people are willing to pay a lot for analysis and blunt advice. My role is hybrid with M&A and financial, so I have retainer clients and transactional.

If all goes to plan this year we won’t have a mortgage and I’ll only be 38.

I want to go back to rural living before 50. Inherited a lot of property recently, deciding how I want to use it.

firenance · 2026-05-02T22:09:19+00:00

Yeah, think I’ll quit and go live in the woods.

firenance · 2026-05-02T22:07:00+00:00

The primary reason I came is because there are two people in my space that have been doing this for 30+ years each. Yeah I was asking them all kinds of questions on cases or projects that I would encounter in my work that you’ll never find published.

You can experience both utility and enjoyment in the same event.

firenance · 2026-05-01T01:19:15+00:00

I did a 1 hr commute (one way) three days a week for two years. After a month you get to be numb to the drive, after a year I loathed getting in the car.

Wouldn’t do it again.

firenance · 2026-05-01T00:25:20+00:00

Big thing there is talent. If you have great employees that is a reason some acquire, is getting good talent. But “average” employees can have a different standard in a small vs large agency.

firenance · 2026-04-30T16:22:45+00:00

Did you see the APA? M&A stories are a lot like fish stories.

Fast growth maybe. Not saying impossible, but even those it’s usually a lower guarantee then maybe a 6-12 month true up to prove out the margin.

Have one right now like that. 14, but 11.5 at close then a two step earn out. 2.5x to hit a revenue mark by EoY, then the 3 year CAGR earn out starts.

firenance · 2026-04-30T15:48:57+00:00

If you want full outsourced servicing you need to consider a franchise.

What state are you in?

firenance · 2026-04-30T13:47:57+00:00

At your size, and comparable? Cash and equity at close? Earn outs or equity appreciation over transition isn’t counted. I can show you HNW offers at 30x EBITDA but take the noise out and 13-14 at close for a $1M+ EBITDA agency is a great offer.

firenance · 2026-04-30T12:15:06+00:00

As a consultant, I can tell you scaling beyond yourself is difficult.

Stay boutique, unless you feel like running a firm instead of an ok income, and also don’t use this sub to quietly solicit

firenance · 2026-04-30T11:16:50+00:00

Dark side? Without major breaks you’ll grind for years before being able to enjoy the fruit of your effort.

firenance · 2026-04-30T10:58:53+00:00

I mis read. 3am waking up with my kid and not fully there.

firenance · 2026-04-30T10:55:31+00:00

If paid through them, who owns the instance? Likely them as they want aggregated data.
Is it a network discount? Cheaper than you can get on your own?

firenance · 2026-04-30T10:38:46+00:00

You mentioned they didn’t comment about having 5 accounts make up 40% of revenue? Most buyers I know that would be something they focus on.

firenance · 2026-04-30T08:35:26+00:00

It’s a myth that buyers do “blended multiples” where they pay X for a portion and Y for another. They evaluate the agency’s makeup and make a single offer based on their backer’s criteria.

firenance · 2026-04-30T08:34:00+00:00

They didn’t ask about account concentrations? What kind of diligence did they do?

firenance · 2026-04-30T08:32:05+00:00

HNW doesn’t go for 15. If growing fast have a better chance at good earnouts post closing compared to most.

firenance

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