“KAP uses a completely unique model where we still get to be the agency’s owners. We still get to make local decisions. We can manage our customers and our staff the way we always have, but we get to be part of something bigger,” stated Cartier. “We wanted to make sure that we had a stake going forward, that we could have autonomy to make decisions.”
Duluth, Minnesota-based Cartier Agency prides itself in offering greater than 40 years of pleasant, private service to its communities. Though a small operation at round 15 workers, Cartier stated the company is trying to increase past Minnesota.
“Looking at the landscape of our industry, it just felt like we would get a competitive edge with a move like this. We can take a bit of work off our staff’s shoulders, in terms of the day to day running of any agency, which allows us to focus on our customers and sales,” Cartier instructed Insurance Business.
How to decide on the suitable associate
Picking the suitable associate was a problem to start with, and the company proprietor acknowledged that belief performed a key function. Cartier Agency was wooed by different consumers within the final 5 years, but it surely got here all the way down to whether or not they may preserve autonomy.
“As independent agents, we were called by everybody,” he recalled. “You obtained a name from someone that’s making an attempt to buy you on a weekly foundation.
This wasn’t one thing that we got here to rapidly, or calmly. In the tip, we felt it was the very best alternative for us to develop going ahead. [Partnering with KAP], we now have a associate that helps us handle the enterprise, as we retain possession and our workers whereas unlocking capital.”
Cartier stated that he’s trying ahead to present process the planning and imaginative and prescient stage through the partnership’s transition course of.
“We’ve got some unique, niche industries that we insure, so we’re trying to find ways to bring on more expertise that will help our current customer base. We’re excited about expanding our reach within the northern Minnesota area,” he defined. “We’re also getting a lot of help with managing producers, so our sales staff is excited. We’re excited to bring them more tools and growth opportunities.”
‘Connected autonomous’ partnership with KAP
Cartier Agency is the sixteenth impartial company to affix KAP’s community, and the forty eighth transaction since KAP’s founding in 2020. The new partnership provides Minnesota to KAP’s increasing community of impartial businesses, which it calls “platform partners,” and enhances its depth within the trucking and worker advantages traces of insurance coverage.
KAP’s secret components to its fast progress is its “connected and autonomous” acquisition mannequin for impartial businesses. The platform seeks to draw impartial, entrepreneurial company house owners which have taken vital dangers to construct their companies. In its M&A mannequin, the principal maintains vital fairness within the company, whereas KAP gives sources, capital, and experience to spice up the company’s progress.
“We don’t buy 100% of our ‘platform partners.’ We allow leaders to retain ownership in their independent agency, in addition to having the opportunity to take shares in KAP. We think that uniquely aligns incentives around driving aggressive growth for the connected autonomy,” Jeff Turner, CEO of KAP, instructed Insurance Business in an earlier interview.
“We’ve been a member of Keystone [Insurers Group], which is a great organization that helps build this teammate mentality between independent agents. And KAP is furthering that and adding a few more tools to the mix,” Cartier stated. “It’s nice to have a team behind you and not feel like you’re on an island on your own in this industry. So, I’m excited about the deal and excited about going forward.”
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