Mar 19, 2019
Should you merge with a bigger agency because you lack the confidence to go the long road? Honestly, no. Agency life is hard, but don't throw in the towel yet. Frustration happens daily and when an offer comes along it might be tempting to let someone else take over.
I think merging with another agency should really just be a last resort. Here's why...
I've worked with agencies for the last five years and before that, I ran my agency for twelve years. And what I usually see in these cases is that it works out in the short term but eventually, it blows up in their face.
Why are you considering merging with another agency? Is it a lack of skill, or a lack of knowledge? Are you unsure about how you can scale your agency? A lot of people look at mergers as a way to grow. But, it's not really the best way to grow and it ends up causing more harm than good.
Here's what you need to do first before I roll your agency up with another: surround yourself with like-minded people. Talk to other agency owners, join a mastermind, hire an adviser who's been there and done it. What you need is the wisdom and experience of others, because running an agency can be very isolating - but it doesn't have to be!
The next thing you should do is evaluate what your agency is actually worth. Maybe instead of a merger, you will want to cash in your chips and sell.
I just think if you merge with another agency you're giving up too much control for nothing. But, after you've researched other options then, as a last resort, consider a merger. First make sure both agencies believe in the same thing, have similar core values, culture and teams line up nicely. Then create a good Operating Agreement and define roles, buyout details, etc.