As we close out the first half of 2017, 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 three primary drivers of the strong activity:
- Increased demand from the participation of even more private equity groups.
- Favorable demographics for outgoing transition within the current agency owner population.
- Relatively low lending interest rates.
It is no surprise that the seller’s market for independent agencies continues to be prevalent because of the PEG involvement, with an ongoing neutral market in the captive arena.
Our sources for potential opportunities for you come through our ever-growing group of more than 5,000 sell side intermediary relationships, website attraction programs, in-house research, our external research group, broken financing deals, telemarketing activities and inbound direct contact by sellers. This pipeline is supplemented by our network of consultants, attorneys, CPAs, loan underwriters, DOIs, PEGs and Strategic Partners.
The two listings below are a small sample of the many new independent insurance agencies for sale discovered through our sources during the last 30 days. Upon request, we will provide our Registered Buyer clients access to previous month’s and off cycle listings.
SHOP A: Michigan – A strong 15-year-old agency in southern Michigan. This is a non-standard shop specializing in home and auto insurance (100% personal lines). This company has eight excellent locations and 12 employees. Direct appointments include Arrow Head / Everest, Progressive, Foremost and others. Asking Price $2.625MM / Reported Revenue $1.5MM.
SHOP B: Alabama – An independently owned and locally operated insurance agency is now for sale. This agency has been providing home, auto, life and commercial insurance for 20 years. Currently they hold direct appointments with Safeco, The Hartford, Travelers, Auto Owners and many more! Asking Price $800K / Reported Revenue $400K.
We have additional opportunities this month across the country, from Tennessee and Missouri to New Mexico and California. 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.