Tag Archives: buyer

Independent Insurance Agencies for Sale – December 2014

Welcome to the end-of-year edition of your STG Insurance Agency Sales Alerts for 2014! This has been one of the most aggressive years yet for middle market insurance agency buyers. Our clients continue to be enthused about buying opportunities because of four key motivations:

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Independent Agencies Sales Alert – November 2014 Edition

Welcome to the November 2014 edition of the STG Insurance Agencies Sales Alert. Current national agency M&A activity continues to trend upward as we finish out the second half of the year. The seller’s market for independent agencies continues to be prevalent.

Overall agency valuations are improving as the economy continues to recover. There are an increasing number of well-funded bidders in the market as well as increase in Private Equity interest in purchasing successful agencies. Both of these drivers are pushing up multiples for most agencies.

Our list of potential opportunities comes through our growing network of more than 5,000 sell side intermediaries, broken financing deals, and our research activities. This pipeline is supplemented by our network of consultants, attorneys, CPAs, bankers, DOIs, PEGs and direct contact by sellers. The listings below are a sample of some of the new independents discovered through our 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.
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3 Things to Know Before Selling Your Insurance Agency

You have built your book of business over years, maybe decades, and now you are looking toward a new chapter in your life. Whether you plan to retire or focus your attention on another venture, selling your insurance agency is a big decision with significant financial implications. Although you may think you know what your business is worth, it takes more than a ballpark valuation to find a viable buyer and complete the sale successfully. Here are three important considerations when selling your insurance agency:

1. Standard valuation processes don’t apply. You’ve crunched the numbers and determined the value of your business. The problem is, your buyer probably won’t care. Traditional rules of thumb for business valuations don’t work well for the insurance industry, because revenues are contingent upon commissions and most agencies have few hard assets. Even if you have followed the standard formulas to determine the worth of your business, most buyers will question your findings—and many may want to do a valuation of their own. Obtaining an appraisal from a reputable third-party can help assure the buyer that your asking price is fair. Having an outside quote also can speed up the selling process and ensure that you reap the greatest possible benefit from the sale of your agency.

2. Assets are great, but cash matters, too. A good list of assets will no doubt aid you in the selling process, but what really matters are the hard numbers that the new owner can expect to earn when buying your business. Prospective buyers will want to know the Sellers Discretionary Cash Flow (SDCF)—that is, the total compensation and benefits that come to the agency owner—to determine whether the profits are in line with their income goals. An independent business broker specializing in the insurance field, like Dallas-based firm Springtree Group (STG), can provide this type of third-party valuation and ensure that assets, cash flow and all of the other components of the financial income of your business are clearly documented for the buyer.

3. You shouldn’t go it alone. The smooth transfer of your insurance agency requires that numerous matters be handled efficiently and accurately, including proper valuation, buyer qualification, deal negotiation, tax analysis, and financing, among others. Most of these issues are beyond the experience or expertise of an agency owner. By contracting with a professional M&A firm experienced in insurance agency transactions, not only can you ensure that the sale of your business will go through faster, but you can also stay focused on the day-to-day operations to ensure that performance doesn’t suffer. Trying to sort out all of the components leading up to the sale while running an agency is a difficult process, and simple mistakes can cost you thousands of dollars, or cause a deal to fall apart entirely. An experienced intermediary can find a qualified buyer and manage the logistics of the transaction, so you can move forward with the next chapter of your career.

Springtree Group specializes in matching buyers and sellers nationwide for insurance agencies with annual revenues under $5 million and managing all aspects of the business transfer. STG not only can provide an accurate valuation for your insurance agency, but can also help you find qualified buyers while maintaining strict confidentiality, so that your employees, carriers and competitors do not learn about the planned sale. In addition, STG works with a highly specialized group of lenders that offer various financing options specific to the insurance industry.

Managing the sale of an insurance agency takes experience and a broad network of industry contacts. You’ll see a much stronger payback if you employ a professional advisory team to help you with the process. For more information, or to discuss the sale of your insurance agency, call Springtree Group at (972) 395-8811 or contact us online.



Are You Ready to Run Your Own Insurance Agency?

If you are well organized, have a knack for numbers, and enjoy meeting new people, a career in insurance sales can be very lucrative. But, just because you do well as an agent that is no guarantee that you will do well as an agency owner. Running a company, even a small one, is a very different undertaking than working for an employer and managing one’s own book of business. So, how can you tell whether you are cut out to run your own insurance agency? Here are three key questions to consider.
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Selling an Independent Agency When the Sole Proprietor Passes Away

In the insurance industry, the majority of independently owned agencies are smaller operations with a single office. An agent with a three- or four-person support staff will build a profitable business over 15 or 20 years, establishing a loyal client base and earning respectable revenues, in hopes of some day selling the agency and enjoying a comfortable retirement. But, what happens to the business if the owner dies? When a sole proprietor owns an agency with no junior partner to take over the reins should they pass away, family members often find themselves searching for guidance on the next right steps. If no one is prepared to take over the agency and continue operations, then finding a buyer may be the best course of action. Here are several factors to consider for contingency planning that can make the sales process easier.
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Insurance Agencies for Sale – May 2014 Opportunities

Welcome to the May edition of the Springtree Group Insurance Agent and Broker Sales Alerts. National M&A activity so far this year is trending lower than average when compared to the last five years. The seller’s market for independent agencies continues to be prevalent, with an ongoing buyer’s market in the captive arena.

For those seeking insurance agencies for sale, Springtree Group uses a multi-level and joint endeavor to develop the most suitable acquisition targets in combination with local market intelligence to which only the client has access. In addition, we provide our clients with additional tools to access the 90 percent of sellers that are not openly and publicly communicating their intention to sell.

The listings below are a small sample of some of the new independent agencies for sale discovered through our 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.
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Independent Agencies Sales Alerts – February 2013 Edition

Welcome to the February 2013 edition of the Insurance Agent and Broker Sales Alerts. Typical for this early point in the annual business cycle we are seeing a rebuilding of activity. The Q4 turmoil created by the anticipated capital gains tax changes has died down and fresh seller leads are beginning to return to the market.

Please remember that access to sellers can be difficult because open exposure of the desire to sell can be a concern for sellers, due to the impact this information could have on insurance carriers (markets), employees, clients and the competition. As evidence and as reported by our strategic partners Marsh Berry, only 10% of all deals in the $1M range are publicly known.
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Springtree Group Represents Independent Insurance Group Benefits in Merger with Marsh & McLennan Agency

Springtree Group (STG), a Mergers and Acquisition consulting and financial support firm, announced its successful representation of Independent Insurance Group Benefits of Dallas in its merger with Marsh & McLennan Agency. Independent Insurance Group Benefits is an insurance brokerage firm specializing in group employee benefits. Marsh & McLennan Agency is a leading North American brokerage firm. The Independent Insurance Group Benefits operation led by Joe Wiseman will remain in Dallas and will become part of Marsh’s Dallas hub, Prescott Pailet. For full details, please call Springtree Group at (972) 395-8811 or contact us online


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US Insurance Source and STG Announces the Acquisition of two Houston insurance agencies: Alden Enterprises and Budget Insurance

There is no slowdown for this Houston based company. Springtree Group, a leading M&A and financial advisor for the Insurance community, is pleased to announce the purchase of Houston based Alden Enterprises and Budget Insurance by its client, US Insurance Source. The transactions closed in the 4th quarter of 2012 and were led by Christine Walton, Director of US Insurance Source and Springtree CEO, Sam Patterson. For full details, please call Springtree Group at (972) 395-8811 or contact us online


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The Springtree Group Announces the Merger of Ladd Gardner Aviation Insurance and Cannon Aviation Insurance.

DALLAS, TX and SCOTTSDALE, AZ — December 10, 2012 – Springtree Group (STG), a leader in providing the full spectrum of M&A and financial services to Insurance Agents and Brokers is pleased to announce the merger of Scottsdale based Cannon Aviation Insurance by its client, Ladd Gardner Aviation Insurance. The combined company is headquartered in Addison, Texas. This transaction closed on December 7th, 2012 and was led by Ladd Gardner, President of LGA, Bob Cannon, Chairman of Cannon Aviation Insurance, Kathleen Cannon, CFO of Cannon Aviation Insurance, Angie Harris, President of Cannon Aviation Insurance and STG CEO, Sam Patterson. For full details, please call Springtree Group at (972) 395-8811 or contact us online


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