Succession Planning Strategies That Protect Your Legacy

If you’re an MGA owner, you know the heart and passion that went into every step of building your business. After years of dedication, succession planning can feel like an emotional, complex, and daunting process – but it plays a vital role in securing the future of your business. There are so many considerations when it comes to deciding if you’re ready to sell, and even more when it comes to deciding on a buyer. Will your employees be taken care of? Will your business have to completely change, or will you be able to preserve the culture you’ve built over the years? What if you’d like to remain in a leadership position?  

There are pros and cons to each route, and planning early can give you the time to fully evaluate what will work best for the future of your business.  

In this article, we dive into how MGA/MGU owners can evaluate if now is the time to sell, what to look for in potential buyers, and how early succession planning can set your firm up for long-term success.  

Timing the sale of your MGA or MGU

The optimal time to sell your MGA depends on several factors, and it all starts with your reason for selling. Reasons you may be looking to sell include:  

• Retirement planning: Selling is attractive to founders who want to retire knowing that there is a clear path for the future of their business. They want a succession plan that protects their employees and their legacy so they can retire with peace of mind.  

• Achieving scale and growth: An increasing number of founders are looking to sell as a lever to scale their business faster with the resources of a larger organization. Joining a program manager or specialty platform gives owners access to capital, operational and technology support, a wider distribution network, and puts the business in a stronger competitive position. 

Regardless of your reason for selling, planning ahead will put you in the best position to choose the right succession plan for your business.  

If you’re considering an acquisition as part of your retirement plan, it’s recommended you start planning at least 3-5 years ahead. This gives you time to identify potential successors or buyers, train and mentor your successors, and sort out any financial and legal considerations. Having a thorough plan in place will ensure a smooth transition and help maximize the valuation of your business.  

On the other hand, if you’re considering an acquisition to scale your business faster, it’s recommended you start evaluating buyers 12-18 months in advance. Growth-focused sales move at a faster pace because the goal centers on momentum rather than retirement timing. Oftentimes the buyer will already have a framework for integration in place, so the path to due diligence and transition moves faster. That said, you’ll still want time to find a buyer who aligns with your team culturally, to define your post-sale role in the business, and to get a clear understanding of how they’ll invest in the business and their expectations for growth.  

Evaluating a buyer for your MGA or MGU  

Finding the right buyer for your MGA or MGU is one of the most important parts of succession planning and shapes the future of your business long after the transaction closes. It influences your employees, your carrier relationships, your culture, and your role in the organization. A strong succession plan gives you room to consider each potential buyer with clarity and helps you define what matters most for your next chapter. 

Each path has its strengths and challenges, so understanding how each buyer operates will help you identify which direction aligns with your goals. 

If your goal is retirement, you’ll want to consider:  

• How your employees will be taken care of and the long-term stability of their roles 

• Preserving the legacy and culture of your team and how important that is to you  

• Continuity of long-term client and carrier relationships and continued service to those clients 

• Confidence in valuation and fairness of selling price 

• Clarity on how leadership will transition post-acquisition  

If your goal is accelerating growth, your considerations are the same, with some additional points. You’ll want to evaluate:  

• Cultural alignment and leadership style. Can you see yourself working with this buyer through good times and bad? 

• The level of autonomy you’ll retain and what your future leadership role will look like 

• Availability of capital, operational support, and strategic resources 

• Expectations for growth, especially in the first several years 

In specialty insurance, there are four main groups of potential buyers: smaller independent buyers, large strategic firms, private equity firms, and private equity-backed program managers or specialty insurance platforms. Each takes a different approach to acquisitions and how they integrate acquired businesses into their organizations.  

Small independent firms or individual buyers: Identifying a small independent firm or individual buyer to acquire your business usually occurs through networking or identifying someone in internal leadership who wants to take over the business and has the resources to do so.  

An independent buyer can be ideal for an owner who wants a more personal handoff. The sale often feels more relationship driven, and you’re able to mentor your successor over time and really bring them into the business before a transition occurs. During the acquisition process, conversations move in a direct way, and decisions depend on a single leader rather than an investment committee. This can create a smoother transition for founders who value closeness and continuity. 

However, this route can also have significant challenges. MGAs rely on deep knowledge of specific industries, long-term carrier relationships, and a clear understanding of underwriting authority. Finding a successor with the right niche underwriting expertise can be extremely difficult, if not impossible depending on the area of specialty. Training your successor, helping them get licensed, and educating them on the intricacies of the business takes time and often leaves your business in the same place it started – contingent on the expertise and knowledge of one person.  

 Overall, an independent buyer is a good fit for founders who want a personal, relationship-driven succession plan that they can execute over the long-term.  

Strategic firms: Strategic buyers are typically large, publicly traded insurance organizations. These firms pursue acquisitions to increase revenue, expand market presence, and strengthen cash flow within an existing corporate structure. Their focus centers on folding acquired businesses into a broader enterprise rather than growing each MGA as a distinct standalone operation over time. 

Because strategics already operate at scale, acquisitions often come with immediate structural changes. This can include rebranding, shifts in reporting lines, standardized operating models, or changes to staffing. Decisions tend to be made quickly, and integration usually begins soon after closing. Liquidity is often attractive, since transactions are commonly all-cash or heavily cash weighted, which appeals to founders seeking a clean exit. 

However, this approach may offer less flexibility for founders who want to remain involved or preserve their existing culture. Leadership roles after the sale are sometimes limited, and long-term autonomy is usually reduced as the business aligns with the parent company’s priorities. 

Strategic firms are best suited for owners whose primary objective is a full exit, immediate liquidity, and minimal ongoing involvement. Founders who value continuity, long-term participation, or gradual leadership transitions may find this path less aligned with their goals.  

Private equity (PE) firms: PE buyers can be identified through a few practical paths. Many start by working with an investment bank or a boutique M&A advisor familiar with insurance distribution. Others rely on industry conferences, referrals from carriers, or networking within regional insurance associations. Some owners take a more targeted route and research PE groups already active in specialty insurance, then approach the firm directly or through an introduction. 

Private equity firms invest capital directly into businesses with the goal of accelerating growth and increasing value over a defined investment horizon. These buyers typically look for MGAs that already operate at meaningful scale and demonstrate a high level of financial and operational sophistication. Clean reporting, formal governance, and the ability to perform under institutional oversight are critical factors in these transactions. 

How a PE firm integrates an acquired MGA varies by firm. Some take a lighter-touch approach, leaving day-to-day operations largely intact while focusing on financial performance and expansion. Others apply a more structured model that introduces standardized processes, reporting requirements, and centralized decision-making. Performance targets tend to be aggressive, particularly in the first few years following the transaction.  

The primary objective for a PE firm is to maximize returns at exit. This can lead to future resale activity, organizational restructuring, or role changes as the firm prepares the business for its next transaction. A PE firm is often a good fit for founders who prioritize valuation, liquidity, and a clearly defined performance-driven growth plan, and who are comfortable operating within an institutional investment framework. 

Private equity-backed program managers or specialty insurance platforms:  Private equity-backed program managers and specialty insurance platforms combine long-term investment capital with deep operational expertise in specialty insurance. These organizations understand carrier expectations, underwriting authority, distribution models, and the realities of running an MGA. Their familiarity with the space brings clarity and efficiency to diligence and integration. 

Rather than absorbing MGAs into a rigid corporate structure, PE-backed platforms focus on strengthening the business with investment, staffing, and targeted support where it is most needed. They help your team stay centered on underwriting and client relationships while filling operational gaps in areas such as technology, marketing, finance, or analytics. This approach lets the business grow without losing the expertise that made it successful in the first place. 

These buyers are selective. They seek profitable, growing businesses with strong potential, so being acquired may be more competitive than with other buyer types. However, once you start working together, culture usually aligns easily because program managers work in the same environment as MGA operators. They know how to protect underwriting authority and maintain trusted carrier relationships, and teams tend to adjust quickly because the buyer’s model feels familiar.  

This model offers founders access to private equity upside without the burden of managing direct institutional capital. Owners can remain involved in the next stage of growth or step back gradually, and employees often stay in their roles because the platform values continuity and depends on the talent already inside the business. 

This option is a good fit for owners who want a hands-on role in guiding the business into its next phase. The platform supports growth while respecting the culture that already exists, creating a strong match for founders who want to stay engaged. Owners looking for a faster or less involved transition may find that a specialty platform or program manager is not the most natural fit, since these organizations focus on long-term development and steady involvement during the early stages of integration. 

DOXA’s approach to M&A 

As a private equity-backed platform, DOXA combines long-term investment capital with an emphasis on preserving the MGA founder’s legacy and the existing culture of the organization. As a founder, you benefit from the scale, stability, and growth resources that institutional backing provides and also gain a partner committed to protecting the vision that built your business. We value rules-based underwriting, transparent execution, and look for strong talent in niche markets, operational discipline, and trusted distribution relationships. 

DOXA brings operations, analytics, and back-office capabilities while the MGA or MGU focuses on underwriting. Leadership has room to focus on client relationships and product innovation because of the daily distractions of finance, compliance, marketing, and administration shift to our support teams. 

Working with a specialty insurance platform like DOXA benefits both sides. The MGA scales with resources that match its ambition, and we welcome a program with proven expertise, profitable performance, and a culture aligned with our community-driven mindset. The result strengthens our platform and preserves the owner’s legacy in a meaningful way. 

Driving valuation for your MGA or MGU and how to prepare before going to market 

Founders who prepare early often see stronger valuations and smoother negotiations. Preparation starts with understanding the factors that buyers look at closely including renewal stability, carrier relationships, consistent performance, and long-term potential. Strong underwriting results show discipline and skill, and a clear growth trajectory demonstrates that the business can scale with the right support. 

Understanding the key factors that shape value means you can take practical steps to strengthen your position before going to market. Clean and accurate financials give buyers confidence, and documented processes reveal an organized operation that can transition smoothly to new leadership. Updated producer agreements, clean licensing records, and current compliance policies also support a more efficient diligence process. 

Whether you decide to go with a small independent buyer, a PE firm, a large strategic, or a PE-backed program manager, a founder who enters the market with well-organized operations, strong financial records, and a clear story of how the business grows will set the stage for a successful transition. This preparation helps buyers see the potential more clearly and positions your team to step confidently into the next chapter. 

Conclusion 

Succession planning becomes easier when owners view it as a long-term process rather than a last step. A clear plan gives you time to strengthen your valuation, refine leadership roles, and fully evaluate buyers. Each buyer type offers a different experience. Independent buyers bring a close, hands-on approach. Large strategic firms are ideal for founders who value liquidity and a clean exit. PE firms provide capital and structured resources.  And PE-backed program managers and specialty platforms offer industry depth and steady support. 

A partner like DOXA adds another dimension. You gain a team that respects what you’ve built and equips your staff with the tools to reach the next stage of growth. You protect the culture that defines your business while gaining operational strength, stronger distribution reach, and long-term stability for your employees. 

Your business reflects years of dedication. A thoughtful succession plan ensures its future stays as strong as its past and gives you a transition that aligns with your goals, your team, and your legacy. 

Ready to explore the next chapter for your business? Let’s discuss your goals and how DOXA can support your growth – reach out to us today at ventures@doxa.com.