08/27/2026
In this episode of the podcast, Carey and Lindsay sit down with Covington Carlson from Live Oak Bank to talk about one of the biggest questions agency owners face when they want to grow through acquisition: How do you actually finance the deal?
Covington breaks down how banks look at insurance agency acquisitions, why some debt can be a powerful growth tool, and what buyers need to understand before taking on a loan. He explains debt service coverage, EBITDA, cash flow, seller notes, and the difference between SBA and conventional lending in a way that makes the financing side of acquisitions much easier to understand.
They also dig into a few of the mistakes buyers make when evaluating a deal. Revenue alone does not tell you whether an acquisition makes sense. The profitability of the agency, the quality of its recurring revenue, the adjustments made to EBITDA, and the amount of debt the business can actually support all matter.
A few things we cover:
✅Why acquisition debt can be considered “good debt”
âś…How banks determine whether an agency can support a loan
âś…What debt service coverage ratio tells you about a deal
âś…SBA vs. conventional financing for insurance agencies
âś…Why EBITDA matters more than revenue when evaluating an acquisition
âś…Common mistakes buyers make with add-backs and due diligence
âś…How financing can work for internal perpetuation and partner buyouts
âś…Why planning early gives buyers and sellers more options
🎧Listen to the full episode at the link in the comments!
