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. Of course, we are particularly proud of the many STG Registered Buyers that added to this tremendous year.

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.

Turning our focus to 2018, STG clients continue to be enthusiastic about buying opportunities because of several critical motivations, including:

  • Gaining critical mass
  • Entering new market areas
  • Accelerating growth and back fill organic growth gaps
  • Better utilization of operating efficiencies / specialty resources

The listings below are a sample of some of the insurance agencies for sale discovered 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.

SHOP A: Southern California – This is a pure book buy with no expenses. The current carriers include Nationwide, Travelers, Alliance United, Infinity and CNA. The book is approximately 70% standard and 30% non-standard. Great carve out book to fold into your current agency! Asking Price $660,000 / Reported Revenue $365,000.

SHOP B: Texas – Ultra-preferred independent P&C book of business for sale in Texas. This is a book carve out – no agency assets or employees. Business is located across all major metro areas in Texas. Current carriers include Safeco, MetLife, Progressive, Allied Trust, ASI, ARI, Centauri, UPC, Universal, and Lighthouse P&C. Size of book available can range from $75K – $200K in commissions for quick cash-only sale. Asking price is 1.85 to 2.00 x commissions based on size of carve out.

SHOP C: Philadelphia Metro – Founded in 2005, this company is an insurance expert referral service to attorneys, who need experts in insurance related litigation. The experts are all accredited and with extensive experience in insurance and the resolution of insurance cases. The owner is flexible with the purchase arrangement and will absolutely consider a revenue sharing formula with a guaranteed income for the buyer. Reported 2016 revenue: $950K / Projected 2017 revenue is over $1 million. / Asking Price TBD.

Additional opportunities are available this month from New York to Colorado and points in between. Being associated with STG provides you access to the strongest array of insurance related M&A services, agency lending tools and financial services available to support your acquisition, perpetuation and operational needs in any part of North America. Please call (972) 395-8811 or contact us online for additional information on services and opportunities.