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May 2018 Off-Cycle Independent Agencies Sales Alert

Our research staff at Springtree Group has been very busy the first half of 2018, sourcing independent agencies for sale in various parts of the country. We have outstanding opportunities for you to consider that we did not want to wait until the June Sales Alert before giving you the chance to take a look. Please move fast if you are interested.

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Preparing for an insurance agency acquisition

Preparing for an Agency Acquisition

You’ve paid your dues as a broker and you’re ready to take your career to the next level by purchasing an independent insurance agency. Or maybe you’re an established agency owner and want to broaden your market reach by acquiring…

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Independent Insurance Agencies for Sale Alert – January 2018

As 2017 drifts into the rear-view mirror, the memory of potential buyers contacting Springtree Group (STG) in November and December wanting to close a deal “before the end of the year” was notable. We unfortunately needed to advise clients that in most cases there is simply not enough time to professionally complete a complex deal unless the transaction was intended to be all cash. The lesson for us is to advise buyers to begin as early as possible. The lesson for you is that it’s never too soon to start planning!

The listings below are samples of some of the new or changed independent agency listings developed through our outreach, research or provided to us during the last 30 days. Upon request we will provide our clients access to previous month’s and off cycle listings.

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Independent Agencies Sales Alert – December 2017

Welcome to the final edition of Springtree Group’s sales alerts for 2017! The current year has solidified itself as another record year for insurance agency M&A activity. In our view, agency ownership transitions will continue to accelerate. The current network of agency owners is dominated by owners in their 60s and 70s. If you happen to be in mid-career, you may be ideally positioned to benefit from the transition of agencies over the next few years. The lack of succession planning within the current ownership ranks is significant and will benefit those that are ready, practiced and financially prepared.

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Independent Insurance Agency Sales Alert – November 2017

Market conditions for mergers and acquisitions remain very active within the insurance distribution sector. All indications are that these tendencies should continue for the foreseeable future, as aggressive private equity-backed buyers continue to drive the market. It is also no secret that these trends are, in turn, driving up overall agency valuations. Our sources for potential opportunities for prospective agency buyers come through our in-house and external research groups, custom built outreach programs and direct contact by sellers. Our pipeline is supplemented by our large network of sell-side business brokers, industry consultants, attorneys, our lending underwriters and broken financing deals. The listings highlighted here are a small sample of some of the new independents discovered through our research during the last 30 days.

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Leverage technology to improve efficiency and agency profitability

Using Technology to Boost Agency Profitability

When it comes to leveraging new technologies in business, many insurance agency owners are still in the Industrial Age. Fewer than half of all independent insurance agents use e-newsletters, text messages, social networks or instant messaging, according to last year’s Insurance Digital Transformation Survey, which polled more than 4,300 independent insurance agents nationwide. The majority also admitted that their business lacked key technology tools, like client portals and claims download. Given that digital tools are practically ingrained in the DNA of Millennial clients and commonly used by Gen Xers, agency owners and brokers who omit these options could not only fall behind the competition, but flat out miss reaching a significant segment of the marketplace.

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Independent Insurance Agency Sales Alert – August 2017

The independent agency seller’s market continues to be prevalent, likely due to significant consumer and market confidence combined with moderate interest rates for buyers, while the captive agency market is neutral. The listings below are a sample of the independent insurance agencies for sale discovered through our research during the last 30 days.

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How to increase the value of your business before you sell your insurance agency

How to Increase Your Agency Value Before You Sell

When it comes time to sell your insurance agency, you want to get top dollar for the business. Whether a prospective buyer agrees with you about what the agency is worth is a different matter. The current practice for agency valuations is more complicated than just calculating a multiple for retained commissions. Discover what prospective buyers are looking for, and how to drive significant value for the business in anticipation of a sale.

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Independent Insurance Agencies for Sale – July 2017 Edition

National insurance M&A activity so far this year has been robust, outperforming 2016. A number of national insurance brokerage houses reported the closing of significant deals in the last 30 days. The listings below are a small sample of the many new independent insurance agencies for sale discovered through our research or provided to us during the last month. Upon request, we will provide Registered Buyers access to previous month’s and off cycle listings.

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Independent Insurance Agencies Sales Alerts – June 2017 Edition

National insurance agency M&A activity so far this year is trending on par with the hectic pace experienced in 2015 and 2016.Our research reveals several key primary drivers, including the participation of even more private equity groups, relatively low lending interest rates, and demographics the current agency owner population. Leveraging our relationships with more than 5,000 sell side intermediaries, along with in-house and outside research, and other sources, we have put together this month’s list of the latest independent insurance agencies for sale.

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Independent Agency Sales Alerts – May 2017 Edition

Private Equity money continues to pour into the insurance space. Primarily because of this significant PE activity in the insurance M&A marketplace, acquisition values are at all time highs. In this competitive acquisition market, it takes a concentrated mix of tactics and quick reflexes to develop adequate deal flow. The listings below are a sample of some of the new independents discovered through our research during the last 30 days.

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Should you buy a book of business?

Why Buy a Book of Business?

If you dream of running your own insurance agency, you can follow various paths to make the vision a reality. You could start from scratch and build your client base, purchase an established agency, or purchase a book of business. The latter option often provides an easy point of entry for brokers who are just starting out, as well as a cost-effective option for those who want to expand an existing agency quickly.

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Exit Your Insurance Agency Gracefully

How to Plan a Graceful Exit from Your Insurance Agency

A good business exit strategy can take years to come together, because businesses are the least liquid investment you can make. Much of the value of your insurance agency resides in intangible elements, like your relationships with vendors and clients, your ability to manage employees, your attention to detail, and your vision for the future. If you are considering selling your insurance agency, you need a great exit strategy to ensure that you get the full value of your business.

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Independent Insurance Agency Sales Alert – March 2017

The M&A market activity in the segments of our focus is average for this time of year, and we see the seller’s market for insurance agencies continuing for some time. Asking multiples in the last 12 months have been trending higher. The listings here are a sample of the new independent leads developed by our staff, discovered through our research or provided to us during the last 30 days.

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So You Want to Buy an Insurance Agency

So, You Want to Buy an Insurance Agency?

Demand from individuals wanting to buy an insurance agency has been strong for the past several years, which is great news for sellers. The flip side is that the seller’s market can make it hard for buyers, who are facing more competition and need to be savvy to get a good value. If you are considering an insurance agency acquisition, here are a few factors that can help you distinguish a great deal from a bad egg.

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January 2017 Off-Cycle Sales Alert

Off-cycle Sales Alert: Prescott Arizona – Standard, Independent P&C, full service agency is now available. This is a fantastic opportunity for a buyer to purchase a full service, independent, standard P&C agency in beautiful Northern Arizona. This independent agency was…

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Independent Insurance Agency Sales Alert – January 2017

As 2016 drifts into the rear view mirror, the memory of potential buyers contacting STG in November and December wanting to close a deal “before the end of the year” was noteworthy. The development work for most transactions typically takes a few months from inception to closing. If buying an insurance agency is in your business plan for 2017, we recommend that you start the procurement process now to complete your acquisition during this calendar year. The listings here are a few the new or repriced independent agencies for sale discovered through our research or provided to us during the last 30 days.

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Independent Insurance Agency Sales Alerts – November 2016 Edition

Recently released Q1 2016 M&A activity statistics revealed that the first quarter of 2016 was the second most active quarter for M&A transactions in the past 10 years. All indications are that these tendencies should continue for the foreseeable future, as aggressive Private Equity backed buyers continue to drive the market. It is also no secret that these trends are in turn also driving up overall agency valuations.

The listings below are a sample of some of the new independents discovered through our research during the last 30 days. Upon request, we will provide Registered Buyers access to previous month’s and off cycle listings.

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Independent Agency Sales Alert – October 2016

The M&A market for insurance agencies continues to push upward with the strengthening of multiples and strong activity. The seller’s market for independent agencies is still prevalent and we have also noted a firming trend in the market for Captive shops in the last six months. Private Equity continues to be a strong driver of the strength, with nearly 80% of the larger reported transactions coming from PE-backed firms.

The listings below are some of the independents discovered through our research or provided to us during the last 30 days. Upon request we will provide our clients access to previous month’s and off cycle listings.

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Smart Strategies to Finance Insurance Agency Growth

One of the most exciting aspects of owning an independent insurance agency is growing the business. Building a solid team and expanding operations are gratifying experiences that make the long hours and effort needed to establish a strong client base worthwhile. But, growing an agency is not without its challenges, foremost of which often is finding the necessary capital for expansion. Learn where to look–and where not to–for the funds to grow your business.

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Insurance Agency Sales Alerts – September 2015 Edition

Welcome to the September edition of the STG Insurance Agent Sales Alerts. As we close out the third quarter of 2015, middle market buyers continue to be enthused about buying opportunities, primarily because of four critical motivations:

1.) Gaining critical mass to leverage expenses, commission structures and contingencies
2.) Entering new geographic market areas and to gain new insurance markets
3.) Back filling organic growth gaps
4.) Better utilization of operating efficiencies / specialty resources

The listings below are a sample of some of the agencies uncovered through our research or provided to us during the last 30 days. Upon request, we provide our Registered Buyers access to previous month’s and off cycle listings.

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What Does It Take to Qualify for an Agency Loan?

Whether they want to hire new producers, launch a marketing campaign, buy a book of business or transfer the agency to a family member, an agency owner generally will need to arrange an agency loan to fulfill their plans. Since most insurance agencies have limited access to capital from banks, working with a broker who has connections to multiple specialty lenders is a smart solution. Rather than asking the agency owner to put up personal assets or real property as collateral, these lenders can put together loan packages based on three primary criteria…

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Why You Need a Perpetuation Plan

Many independent insurance agency owners build their business with the goal of selling the agency when they reach their 60s or 70s and using the proceeds to fund a comfortable retirement. But what happens if things don’t go as planned? A downturn in the business market—or worse, the death of the owner—can force an unplanned or unfavorable sale, which could have a negative impact on the owner, owner’s heirs, or agency employees.

The 2014 Future One Agency Universe Study estimates that 14 percent of independent agencies do not have a perpetuation plan in place, although industry insiders believe the number is much higher. Often, agency owners are so focused on managing the day-to-day business that they don’t consider what the future may hold. Here are three approaches to business perpetuation planning that can help ensure that your independent agency continues when you are no longer at the helm, and also ensure that you get the most value from your business while facilitating a smooth transition to new ownership.

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The Best Financing Options for Your Agency

As more Baby Boomers near retirement age, an estimated 50% to 75% of U.S. insurance agencies will transition ownership within the next ten years. However, both buyers and sellers are finding themselves in a difficult situation, because most traditional lenders…

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Independent Insurance Agencies for Sale – April 2014

Welcome to the April edition of the STG Insurance Agent and Broker Sales Alerts, listing independent insurance agencies for sale nationwide. The M&A market activity in the segments of our focus has shown strength as we finished the first quarter. The seller’s market continues; however, we have seen mounting evidence that buyers are being very rational with their purchases and overvalued agencies are setting in the market wanting for buyers.

The hard P&C market continues to be with us and we anticipate it to endure for the foreseeable future. The healthcare market is softening from previous levels, however the biggest note is the lack of the feared collapse of the small employee benefits agency sector as a consequence of the ACA that some were predicting.

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Insurance Agency Listings – February 2014 Buying Opportunities

Springtree Group is proud to present a sample of the insurance agency listings we have compiled for February 2014. Although it is still very early in the year, the end of 2014 will be here before you know it! There is a common saying that “timing is everything.” Just a few months ago, numerous buyers contacted STG wanting to close a deal “before the end of the year;” however, such a complex process takes time to put together, and they were unable to complete a transaction before their desired deadline. For this reason, interested buyers should begin exploring opportunities much earlier in the year.

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Insurance Agencies for Sale – January 2014 Independent Agency Listings

Welcome to the first edition the STG Insurance Agent and Broker Sales Alerts for the New Year! We are excited to see tremendous opportunities with independent insurance agencies for sale across several parts of the country. Middle market buyers continue to be enthused about buying opportunities because of four critical motivations:

  • To gain critical mass
  • Enter a new market area
  • Back fill organic growth gaps
  • Better utilize operating efficiency / specialty resources

In our view, the most effective tactic in acquisition target development is a multi-level and joint endeavor, using the national approach that STG provides in concert with the “boots on the ground” local market intelligence…

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Insurance Agency Listings – December 2013 Edition

Springtree Group is pleased to present the December 2013 insurance agency listings for independent brokers and agents. National activity for the year has been average to good. The seller’s market for independent agencies was prevalent all year, as was the buyer’s market in the captive arena. The firming of P&C pricing in most sectors caused selling multiples to lift in anticipation.

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Texas Insurance Agencies for Sale – November 2013

Welcome to this special edition of the STG Independent Agent and Broker Sales Alerts, featuring Texas insurance agencies for sale. Periodically we will send out a notice on opportunities off cycle. This year we have had particular interest in the Texas market place. A number of agencies have already sold or are in contract in Texas this year. Our partners have asked that we advise you of the following three shops which recently came back on the market. These shops are highlighted because the owners would like to see a deal happen prior to year end, which would generally mean a cash deal at this time of the year.

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Springtree Group Announces Merger of Nihill Insurance Agency and Ascension Insurance Agency

The Ascension Insurance Agency, based in Leander, Texas, will be merging with the Nihill Agency, located in Spring Branch, Texas. This transaction closed on October the 29th, 2013 and was led by Paul Nihill, Principal of the Nihill Agency; Janie Lua, Principal of Ascension; and Springtree Group CEO, Sam Patterson.

“The merger of these insurance firms helps reinforce a sustainable and marked advantage for our highly acclaimed insurance operations. The addition of the Ascension organization and client base significantly enhances our position as a leading provider of insurance services in the Texas Hill Country,” said Nihill. “Ascension’s clients will benefit from emphasizing top of scale customer service, programs, claims experience, integrated client relations as well as the addition of seasoned staff and resources.”

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Insurance Agencies for Sale – November 2013 Edition

Welcome to the November edition of STG’s Independent Agent and Broker Sales Alerts, with the latest updates on independent insurance agencies for sale nationwide. Direct access to sellers can be difficult because sellers open exposure of their desire to sell can be a concern due to the impact this information could have on insurance carriers (markets), employees, clients and the competition. As reported by our strategic partner, Marsh Berry, only 10 percent of all deals in the $1MM range are publicly known.

New activity for this time of year is average with normal deal size trending down. Most large deals that are to be completed in the current year are committed and pushing for close.

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Independent Insurance Agency Sales Alerts – October 2013 Special Edition

Welcome to a Special Edition of the Springtree Group Independent Agent and Broker Sales Alerts. Springtree Group (STG) works with financial institutions that find themselves in a receivership position with Agencies and Brokerage firms. These relationship includes the FDIC in situations in which a bank in receivership owns an insurance operation. We were advised that the agency below was up for bid a couple weeks ago, but because of the short bid notice we declined to openly distribute. However, on October 15th, the FDIC reported that they would allow STG to communicate to our clients that they are providing an additional two weeks for you to declare your interest.

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Springtree Group and Premium Finance Associates Announce New Jointly Owned Marketing Company – Insurance Agent Loan

The Springtree Group (STG), a national leader in providing a full spectrum of M&A and lending services to agents and brokers in the insurance industry, and Premium Finance Associates (PFA), a specialized marketer and manager of financing services for Property & Casualty policies on October 9th jointly announced the formation of a new insurance marketing venture.

The agreement calls for the development of a new jointly owned marketing company, Insurance Agent Loan (IAL). The two companies will pool resources and intellectual property to speed the development and adoption of financial products and services to support increased productivity, growth and profitability of Insurance Brokers and Agents.

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Independent Agencies Sales Alerts for October 2013

Welcome to this month’s edition of the STG Independent Agencies Sales Alerts. Activity for this time of year is normal. The sellers’ market for the acquisition of independent agencies persists. Middle market buyers continue to be enthused about buying opportunities because of four critical motivations.

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Navigating the Insurance M&A Jungle

Finding your way through the complex insurance M&A process can be as difficult as cutting through the thicket of a jungle. Amidst the dense vegetation are hidden dangers and unique obstacles that can quickly lead to trouble. But navigating what is to you, uncultivated land, can be much smoother and safer with the help of a knowledgeable and experienced third party — a Mergers and Acquisition advisor.

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Springtree Group Represents Independent Insurance Group Benefits in Merger with Marsh & McLennan Agency

Springtree Group (STG), a Mergers and Acquisition consulting and financial support firm, announced its successful representation of Independent Insurance Group Benefits of Dallas in its merger with Marsh & McLennan Agency. Independent Insurance Group Benefits is an insurance brokerage firm specializing in group employee benefits. Marsh & McLennan…

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April Buying Opportunities

In the April edition of Insurance Agent and Broker Buying Opportunities provided to our subscription clients, we have more than a dozen confidential listings reaching from Central Florida to California. We work to provide our clients with these highly confidential…

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March Buying Opportunities

Each month, we provide highly confidential listings of insurance agency and broker buying opportunities to our subscription clients. We communicate regularly with our network of more than 3,100 business intermediaries as well our network of consultants, attorneys, CPAs, bankers, DOIs…

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Springtree Group Partners with Vantage Agora

Vantage Agora Inc., a provider of back office processing, systems integration, custom application development to insurance and finance companies, today announced a formal development and marketing partnership with the Springtree Group, a leader in providing a full spectrum of financial…

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