Before a business can grow and expand, the business needs to be able to secure capital to hire producers, open branch offices and purchase smaller agencies.

A recapitalization solution from FIRST can help an agency get the most out of its assets and position itself for future growth. The following case study is an example of a recapitalization plan that was developed for an agency who saw the value of such a plan.

The Need
An agent needed a plan and the capital to build offices in new markets, buy out the current ownership and move ownership to active producing leaders with the organization. Their new CEO had the desire to become a national player, but the agency was faced with serious challenges.

Most of the available firms that were a potential strategic fit for the agency were overvalued and cost prohibitive for the agency in the current environment. In addition, ownership of the agency was closely held by principals who had no real vested interest in growing the agency.

The Solution
Working with two other financial institutions, FIRST developed a recapitalization plan and established a loan facility, helping the agency to open offices in new markets and staff each office with experienced leaders and producers from local competitors.

The new holding company they created allowed current active owners to retain their ownership and inactive owners the opportunity to sell. They now offer new leadership the opportunity to buy into the new holding company and gain an interest in the agency.

The Results
Continuing its aggressive growth pattern, made possible by this facility, this agency has since created its own premium finance company which controls $150 million in premium finance volume, serviced by FIRST.

FIRST can help any agency with a recapitalization plan tailored to meet the agency’s individual needs. There is no “one size fits all” approach to lending. We service every loan with the same amount of professionalism and integrity.