The Silver Tsunami and What it Means for the Insurance Industry

2030 marks the year by which even the youngest Baby Boomers will turn 65. The mass retirement we’ll see over the next eight years has been cleverly dubbed the Silver Tsunami. Today we’ll analyze the effects this shift will have on younger co-owners who are interested in buying out their retiring partner’s share.

However, Springtree Group is equally prepared and motivated to work on your behalf if you plan to retire and wish to sell your stake to your business partner or a third-party buyer.

Plan Ahead

A buyout cannot be executed properly when it’s attempted last-minute. An elegant buyout transition requires planning, with phases executed in stages as retirement draws near. Springtree Group can help you prepare for your buyout as soon as you decide that this path to full ownership is one you hope to take.

Establish a Valuation

Whether you’re interested in purchasing or selling all or part of an insurance company, it’s essential to source a valuation that both parties will respect.

Sourcing Financing

For most co-owners, the biggest obstacle to overcome is sourcing the financing needed to present the departing partner with an enticing compensation package. The amount must both repay the retiree for the equity they’ve invested and represent a healthy offer for the agency’s current valuation.

Buyers in the insurance industry often struggle to secure financing through traditional banks. Springtree Group understands the complex private insurance landscape, which allows us to fully analyze whether the buyout scenario you’ve envisioned will be right for your specific situation.

Springtree Group’s in-house financing services specialize in backing buyers who are purchasing insurance agencies. We can ensure that buyers are able to make the most robust offer possible. The most common cause for failed buyouts is unsuccessful financing attempts. By working with Springtree Group, you’ll sail over this otherwise challenging hurdle.

The three most typical configurations of partner buyout financing:

Phased Buyout

This arrangement is ideal for co-owners who desire a gradual transition. Over time, the selling owner sells their percentage of the agency. As their stake in the agency dwindles, so does their responsibility for involvement in the agency’s daily operations. This arrangement can reduce the financial strain for the purchasing partner and create a smooth, gradual transition for the business overall.


Like a phased buyout, the earnout arrangement allows the selling partner to remain with the agency for a predetermined period of transition. The purchasing partner will make a significant payment at the beginning of the earnout period, with the remaining balance due when the departing party hits agreed-upon performance metrics. By incentivizing active involvement in the agency, the purchasing partner can feel sure that the retiring owner will remain invested in the business’s success.


Insurance agencies tend to be so highly valued that co-owners can find it challenging to finance a single large payment with traditional lenders. If you are considering pursuing lump-sum financing, contact us as soon as possible so that we can assist you.

The Importance of an Intermediary

If not facilitated properly, partner buyouts can strain even the best of professional relationships. Whether we represent you as a buyer or as a seller, Springtree Group will ensure that the transition is smooth and successful for all involved parties.