Welcome to the September 2017 edition of the STG Insurance Agent Sales Alerts. Sales activity has been strong throughout the summer and the trend is expected to continue into the fall. Middle market buyers remain enthusiastic about buying opportunities primarily because of four critical motivations:

  • Gaining critical mass to leverage expenses, commission structures and contingencies
  • Entering new geographic market areas and gaining new insurance markets
  • Back filling organic growth gaps
  • Better utilizing operating efficiencies / specialty resources

In our view, the most effective tactics in acquisition target development include a multi-level and joint endeavor, using the national approach that STG provides in concert with the “boots on the ground” local market intelligence that only the client has access to. STG provides our Registered Buyers a number of tested, high-quality deal origination tools. The goal is to reach the 90% of the agency sellers that are not openly communicating their intention to sell.

Our deal sources include our in-house research team, our out-bound telemarketing group, the ever growing group of over 5,000 sell side intermediaries and broken financing deals exposed to us through the STG financing division. This activity is supplemented by our network of consultants, attorneys, CPAs, bankers, DOIs, and PEGs, as well as significant direct contact by sellers. STG provides you with the broadest insight available into new buying opportunities in the insurance space.

The listings below are a small sample 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.

SHOP C: Carleton, Michigan – An established independent Predominately Life Insurance, with Health. The specific focus of the agency is Final Expense coverage in the ages 55 and up market. 15 employees. The shop is a marketing machine. Direct Carriers include Allianz, Cigna, Conseco, Lincoln, United of Omaha and many more. The agency uses I-Pro policy management systems. Asking $TBD / Reported Revenue $2.9MM.

SHOP D: Calhoun, Georgia – An established independent P&C agency (80% Personal & 20% Commercial Lines) in northern west Georgia is now for sale. There are three employees. This agency is licensed in Georgia and Alabama. The shop includes direct appointments with Progressive, Southern General, ALFA, Haulers, ASI and more. Asking Price 2X of revenue / Reported Revenue $365K (includes $15K of fees).

SHOP F: Westminster, Colorado – A deep rooted 20-year-old agency full-service brokerage with a focus on being a one-stop-shop for those who are Medicare eligible. 100% personal lines. Licensed to sell products in 35 states. Six staff members. All appointments are direct and include United Healthcare, Humana, Cigna, Blue Cross, Aetna, Mutual of Omaha and others. Asking Price $1.5MM / Reported Revenue $1.118MM.

Additional opportunities exist from Florida to Texas to the West Coast. Being associated with STG provides you access to the strongest array of M&A and financial tools and services available to support your acquisition, perpetuation and operational needs in any part of North America. Please call us at (972) 395-8811 or contact our office online for additional information on services and opportunities.