Welcome to the first edition of the Insurance Agent Sales Alerts for 2018, and congratulations to those of you that contributed to the record breaking insurance agency M&A activity year in 2017!

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 development and mechanical work for most transactions typically takes a couple months from inception to closing. If buying an agency is in your business plan for 2018, we recommend that you seriously consider starting the procurement process now in order to complete your acquisition during this calendar year.

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.

SHOP B: Upstate New York – A very long-standing independent property an casualty insurance agency, serving the entire state of New York is now available for sale. The business is 100% standard lines business with direct appointments with National General, Safeco and Utica. WAP $671K / Asking Price $180K / Reported Revenue $90K.

SHOP C: Southern California – This is a pure independent P&C book buy with no expenses. The current carriers include Allied, Travelers, CSE, Hartford Infinity and many more. The book is approximately 70% standard and 30% non-standard. A great carve out book to fold into your current agency! Seller is willing to sell the entire book or split up the book to fit buyer’s carrier or line of business needs. Asking Price $403K / Reported Revenue $216K.

SHOP F: Saint Louis, Missouri – A highly profitable, preferred personal lines independent P&C agency is available for sale. The agency is 94% PL / 6% CL. Company books and records are meticulous. Automation work flows and online presentation are ahead of the times. The out of state owner does not have relationships with clientele and is not involved with the day to day operations. Highly skilled account management team in place and included in sale. This deal is being sold using an EBITDA multiple. No seller paper or hold backs. Two-year detailed financials are available for qualified buyers. Reported adjusted EBITDA $305K / Asking price $1.65MM.

Additional buying opportunities are available coast-to-coast, from Pennsylvania to Colorado. 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. For additional information on services and opportunities, please call (972) 395-8811 or contact us online.