k.p.d. insurance inc.
BUILDING AN AGENCY PERPETUATION & GROWTH PLAN
k.p.d. insurance, Inc., an Oregon-based independent insurance agency, had a growing concern like many companies face today due to an aging ownership group. Roughly 82 percent of the agency’s stock was owned by shareholders over the age of 55 – all of who wanted to retire at or by 60 years old.
An agency consultant, John Jaques, was invited to an Intersure meeting on internal perpetuation. After the meeting, the group, along with John, helped k.p.d. develop a roadmap for its perpetuation plan. Because of the agency’s ability to openly share detailed financial data, k.p.d. felt John had the experience and creativity to address their unique situation. He identified the additional steps needed to execute the plan and followed up to make sure the agency stayed on track. To this day, k.p.d. uses their defined perpetuation plan and credit John and the Intersure group for helping the agency remain independent.
k.p.d. has more than tripled their revenue since engaging with John Jacques and Intersure. Additionally, their productivity (revenue per employee) is 70% greater than the day they joined Intersure.
“Without Intersure we would, definitively, not be an independent agency today. Intersure allows us to network and share best practices with a great range of agencies, as well as learn from every one of them.
For us, the Intersure relationship is vital to our success at all levels of the organization.” – Kyle Hudson, CEO
Since 2001, k.p.d. has transitioned 151% of their stock to new owners using their defined perpetuation plan. All current owners are active in the business and each has purchased their stock using the fundamental approach John Jacques helped install in the agency. k.p.d.’s current ownership group ranges from 32 years old to 54 years old. They are well positioned for further growth and continued independence.
Challenge
• Large group of shareholders were close to retirement
Solution
• Worked with Intersure and an agency consultant on a business perpetuation plan
Results
• Remained independent
• Doubled in size
• 70% increase in revenue per employee