Independent Agencies Sales Alert – February 2016 Edition

Welcome to the second edition of the STG Insurance Agency Sales Alerts for 2016. Our middle market Registered Buyers continue to be enthused about the positive impact to their organizations that buying opportunities present, principally because of four critical motivations:

  • To gain critical mass, enhancing commissions and bonuses
  • To enter new geographic market areas
  • To back-fill organic growth gaps and add insurance markets
  • To better utilize operating efficiency / specialty resources

The independent agencies for sale that we have compiled this month span the breadth of the U.S., from Florida to Colorado. Our source for potential opportunities for you come through our ever growing group of over 5,000+ sell side intermediaries, broken financing deals, telemarketing activities and the STG in-house research group. Our 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 agency buying opportunities in the insurance space.

The process to find and complete a transaction often takes six months. So if buying an agency is in your business plan for 2016, we recommend that you consider starting the procurement process now.

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 Registered Buyers access to previous month’s and off cycle listings.

SHOP A: Colorado – An 18-year-old Standard P&C and Health insurance agency. The agency is made up of 35% P&C business and 65% Health business. Agency is licensed to write in Colorado, California, Texas, Ohio, Virginia and Arizona. Major markets include Encompass, Safeco, Liberty Mutual and Kaiser. Don’t let this one pass you by. It is a solid agency and won’t last long! Asking Price $600K / Reported Revenue $300K.

SHOP E: Southern New Mexico – A very well established independent insurance agency is now for sale. This agency is predominantly (65%) Personal Lines and 40% preferred commercial. Reported Revenue $785K / Asking Price $975K.

SHOP F: New Mexico – A well-established independent insurance agency. Agency is 90% Standard and 10% Non-Standard general lines. 100% growth in 5 years. Great location with a fair amount of walk-in traffic. Major markets include Hartford, Travelers and Safeco. Asking Price $150K / Reported Revenue $70K.

Being associated with Springtree Group 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 us at (972) 395-8811 or contact us online for additional information on services and opportunities.