He added: “You’ve got to have an agency principal who is going to have the ability to be flexible as well as a financial institution that will work continuously through the deal.” Other priorities: Getting qualified legal counsel who is familiar with insurance agency transactions; and working with a knowledgeable CPA (certified public accountant) experienced in agency perpetuations. Grace, the principal owner since the beginning of 2010, looked back at the lessons learned and the tremendous amount of work required after he became owner. “The combination of proper planning, absorbing the retiring principal’s book of business, and adding the administrative side of supervising 23 people has been quite monumental and still is,” he pointed out. It’s working, though: “The transition has been very smooth due to the quality of staff and the tenured employees” at Underwood Anderson & Associates. Grace has seen his ownership dream come true, but is already looking to the next generation of ownership. “Everyone here [in the agency] is very tenured,” and the new principal wants to see the next owners come from within the agency. “We hope to see a smooth transition and provide a level of opportunity by continuing to build value for even the young producers that are coming up in a few years.”
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With A Bank That Works Like You InsurBanc was founded by insurance industry leaders, giving us the expertise to assess your independent agency’s financial position and, like you, provide professional advice and recommendations. We combine the flexibility and convenience of technology with the personal touch of our dedicated staff. InsurBanc recognizes the uniqueness of your agency business and offers a range of specialized deposit products to help facilitate cash management and maximize value. We look at your agency’s individual cash flow situation, then design a cash management program to meet your needs. • Depository Accounts • Online Banking/Bill Pay • Remote Deposit
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To partner with an advisor that knows the agency business turn to InsurBanc.
www.assurealliance.com 1-864-541-0168 *Insurance Journal’s “Top 100 of 2011”
Winter 2012 • South Carolina Agent & Broker
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