A unique merger of a local insurance agency and payroll services bureau in Massachusetts
In an unusual and interesting acquisition which may be of interest to other independent agents, The DiVirgilio Insurance Agency has announced its acquisition of On-Time Payroll, Inc., as a new payroll subsidiary of the agency.
Based in Lynn, DiVirgilio Insurance has been a family-owned and operated independent insurance agency for over 20 years. On-Time Payroll is a local, payroll business bureau offering a vast array of services such as timekeeping, HR solutions, and workers’ compensation, in addition to payroll and tax services. Founded in 2006, it is headquartered in Waltham.
In commenting on the acquisition, Matt DiVirgilio, President of DiVirgilio Insurance, Inc., says that the acquisition will deepen his agency’s ability to serve the varied needs of its commercial insureds. “We’re excited that the On-time Payroll suite of product offerings will allow us to provide one-stop shopping for all of our commercial client needs including insurance, employee benefits, risk management, and now payroll.”
The independent agency plans to use the acquisition to expand commercial services
When queried as to what motivated him to look into acquiring a company like On-Time Payroll, versus another independent insurance agency, he noted the growing trend of payroll services entering the insurance field. “One reason why we got involved in this business was that we saw ADP and Paychex getting more and more involved in the insurance business,” he explained adding, “We wanted a more level playing field.”
Another reason was to strengthen his existing client relationships. “We also realized that our clients weren’t receiving the same service on the payroll as they were with us on the insurance end,” he noted, adding that, “…we knew we could strengthen the relationship by being able to offer a full-blown Payroll Services platform.” One example, he cited was the improvement many Business Clients had seen was with Pay As You Go Workers Compensation and avoiding annual audits.
The acquisition will also allow him to partner with and help other independent insurance agents
While Mr. DiVirgilio says his main goal now is to offer these newly combined services to all of his business clients, from commercial insurance to group/employee benefits to payroll services, in the future he envisions expanding this option to help fellow independent insurance agents. “We believe besides helping our own clients, the future growth opportunity is for us to be a Partner for other Independent Agents out there that want to provide Payroll Services to their business clients but don’t know where to start and want to work with a firm/Partner that is knowledgeable and speaks the “insurance language”. We have a great foundation to really grow this service for ourselves and other Independent Agents.”
As this appears to be one of the first acquisitions of its kind, Agency Checklists was interested in learning how this opportunity presented itself to Mr. DiVirgilio and his agency. His response was just as surprising: “How did I find this firm? Cold Call/Cold Email -If you can believe it.”
For those who are interested in learning more or to get in touch Mr. DiVirgilio, please contact us here.