As summer winds to a close, the independent agency seller’s market continues to be prevalent, while the captive agency market is neutral. We attribute the continuing strength in agency M&A activity to significant consumer and market confidence in this space and moderate interest rates for buyers.

Overall agency valuations are improving, primarily because of heavy pressure by the increasing number of well-funded bidders in the market, including strong Private Equity interest coupled with the many national players purchasing successful agencies. This pressure, combined with advantageous interest rates and positive multiple arbitrage are driving up asking prices for most agencies.

The listings below are a small sample of the independent insurance agencies for sale discovered through our research or provided to us during the last 30 days. Our source for potential opportunities for you come through our ever-growing group of over 5,000 sell side intermediaries, broken financing deals, an in-house research group and our directed outbound telemarketing activities. This pipeline is supplemented by our network of consultants, attorneys, CPAs, bankers, DOIs, PEGs and direct contact by sellers. STG provides you with the broadest insight available into new buying opportunities in the insurance space. Upon request, we will provide our clients access to previous month’s and off cycle listings.

SHOP A: 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 D: Denver, Colorado – This is not a typical agency purchase, but more of an asset buy. The shop is owner and beneficiary of three large life insurance policies (Totals $680K) on very senior retired executives. The shop also has trademarks on one of the most marketable names in the space. Specific revenue is only $50K / year being handled through a GA. The agency has been operating for over 50 years under the owner and he is ready to retire. Asking Price TBD.

SHOP E: North Texas – A well-established, 20-year-old property and casualty business in North Texas is now for sale. This book is predominantly preferred personal lines auto and home. This shop includes direct appointments with Allstate (Independent Contract), Foremost, Kemper, National Lloyds and more. There is considerable value to the Independent Allstate contract. There is also a building included. Asking Price $175K / Reported Revenue $50K

SHOP H: Philadelphia Metro – This is not specifically an insurance agency but is an insurance-related professional consulting / expert witness company. Founded in 2005 and includes 3 employees. The mediators and arbitrators are all accredited and with extensive experience in insurance and the resolution of insurance cases. The owners are flexible with the purchase arrangement and will absolutely consider a revenue sharing formula with a guaranteed income for the buyer. Reported Revenue: $950K / Asking Price TBD.

Additional opportunities exist nationwide, including shops in Oklahoma, Tennessee, Kentucky, New Mexico and Michigan. 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.