Welcome to 2019’s final Springtree Group Insurance Agency Sales Alert! As the year draws to a close, it’s clear that 2019 has been yet one more record year in the Insurance Agency M&A space. We are proud of our team’s accomplishments, and we are especially proud of the many STG buyers who contributed to this year’s tremendous surge of activity.

Having analyzed this year’s trends, we are confident that the number of agency ownership transitions is only going to continue to rise as we move into the new year. Currently, the majority of independent agencies are owned by a demographic just on the cusp of retirement, presenting an ideal opportunity for those of you who are mid-career. If you want to expand your agency portfolio over the next few years, keep a sharp eye out for owners who are eager to sell but have not created a succession plan. These situations are common, and benefit those who are financially prepared, experienced, and ready to move quickly.

As STG shifts our focus to 2020, our clients are continually excited about the purchasing opportunities we present, many of whom are incentivized by the potential to:

  • Gain critical mass
  • Enter new markets
  • Accelerate existing growth and fill organic growth gaps
  • Improve implementation of operating efficiencies/use of specialty resources

The following listings are a small sample of the agencies our research teams have zeroed in on this December. Diligent market research and nearly constant contact with our extensive network mean that STG gains early information about listings – sometimes before they are even officially on the market.

SHOP B: Indiana: This is a full-service agency, established in 1999 in the upper Midwest. It carries a blend of P&C and Supplement/Medicare Advantage business. Primary carriers include Nationwide, Progressive, Safeco, Indiana Farmers, Progressive, and Travelers. The agency employs two staff members full-time, both of whom would like to stay on with the new owner.
Reported Revenue: $290K. Asking Price: 2.5X revenue. Tracking Code: DINJF

SHOP C: Kentucky: This is a full-service independent brokerage agency specializing in ERISA-based self-funded plans and administrations. After 25 years of success providing innovative, cost-effective products and vendor programs to their commercial clients, this agency is now for sale. Owner owned and operated, there are no other employees. The owner is offering to stay on to assist the buyer with the transition process.
Reported Revenue: $175K. Asking Price: 2.5X revenue. Tracking Code: DKYKJ.

SHOP E: California: This is an independent agency. Having specialized in environmental industry insurance for 13 years, the agency has become an important resource for all companies that interact with the densely complex, ever-shifting industry. Providing 100% commercial lines, this built-from-scratch agency represents an ideal opportunity to cross-sell personal and business lines. Reported Revenue: $390K. Asking Price: $975K. Tracking Code: DCAJK

STG also has an extensive in-house financing practice. If you require financial backing, you can confidently rely on our lenders. We can seamlessly integrate your M&A project with your financing process. Your costs remain the same, but your work load will be reduced and your transaction has a much higher chance of succeeding. Keep in mind that botched financing remains the most common reason deals fail.

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. We also proudly serve customers in South America, Europe, Africa and the Bahamas. Please email Service@SpringtreeGroup.com for more information on the agencies listed in today’s Sales Alert and to obtain access to our complete list of agencies currently for sale.