The listings below are a small sample of the many new independent insurance agencies for sale discovered through our research or provided to us during the last 30 days. Upon request, we will provide Registered Buyers access to previous month’s and off cycle listings.
La Mirada, California – This a fantastic six-year-old agency located in the vibrant Los Angeles metro area of Southern California. This agency is a full-service agency with a book of loyal clients. There will be 2 CSR’s and 5 producers that will continue post sale. Markets include Allied, Amtrust and Hartford. Asking Price 2.5X of Revenue / Reported Revenue $550K.
Port Charlotte, Florida – This is an exciting block of business but made up of Medicare Supplement clients. This is a very profitable business niche in the Florida market place. The owner is happy to engage with the buyer for a period post close to make sure the block is carefully transitioned. Markets include, Aetna, United Healthcare and Humana. Asking Price 2X of Revenue / Reported Revenue $50K.
San Francisco, California – A high tech and established P&C agency is now for sale. Clients are primarily Technology, Construction and Real Estate development. Agency uses a variety of technology tools to improve efficiencies and is entirely digital (no paper). The owner is happy to engage with the buyer for continuing employment if requested. 100% standard line products through, National General. Networked Insurance Agents, Arrowhead and others. Asking Price 2X of Revenue / Reported Revenue $44K.
Our buyers have expressed a strong demand for us to provide an overview of what insurance agencies for sale we show as currently available in Texas at this time. We also frequently receive inquiries from agency owners and prospective buyers from other parts of the country. In both cases, we support and work for you, the buyer. To this end, Springtree Group puts together every month a special listing of notifications for insurance agencies for sale across the state and across the country. We eliminate any independent agencies that we know are under contract and have a few that are specifically pocket listings for which the sellers have asked us not to broadly communicate the availability.
The blog links shown below highlight additional examples of the numerous listings for Texas-based insurance agencies currently available, as well as insurance agencies for sale in other parts of the country. Each month's full listing is available to registered buyers. Below the latest posts, we have also included helpful information about buying and selling agencies, and important considerations on both sides, from due diligence considerations to financing options.
For more information, please call Springtree Group at 972.395.8811, or contact us online with details about the type of insurance agency you are looking to buy, such as the size, coverages offered and geographical location. We look forward to working with you.
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It’s a reality that there is simply a much higher demand from buyers looking to purchase insurance agencies than there are insurance agencies for sale. The seller's market for independent insurance agencies is obviously great news for anyone who is currently looking to sell their agency and get out of the business or retire. However, for those who are interested in making insurance their profession, purchasing an existing agency or book of business can be more challenging, and knowing where to look is key.
Most of the buyers who are searching for the right insurance agency to purchase are looking for certain qualities in an agency. Naturally, potential buyers want to land an agency that has been fiscally successful with a good, solid stream of revenue. Independent insurance agencies that offer a wide variety of products or services are in demand.
Many of today’s potential buyers are already involved with finance in some capacity in their current profession, and they realize that the insurance industry can be a lucrative career choice. An existing agency owner can potentially increase the valuation of their business by offering fewer or more specialized products, rather than focusing on a broad range of coverages. (Buyers can also drive revenue for an agency after an acquisition by narrowing the scope of coverages offered.) By focusing on a particular market niche, you not only target a well-defined customer segment with higher hit ratios, but also benefit from more relevant referrals and efficient prospecting. In addition, relationships with carriers and underwriters often are stronger, and the narrow focus can help you streamlined operations, which in turn will increase productivity.
If you are a buyer interested in acquiring an existing business to enter into the insurance arena, or expanding your own agency through an acquisition, you need to have a clear vision of your objectives to target the right insurance agencies for sale. Do you want to buy a book of business, or a fully equipped agency that has a physical office, equipment, and staff? Are you looking for an independent agencies that offers a broad range of coverages, or specializes in a particular market niche?
Of course, anyone who is considering purchasing an insurance agency should be acutely aware of the details surrounding the sale of any agency to determine the right valuation. Factors to consider include past performance, projected earnings, tangible net worth, physical assets, quality of employees, risk management, and the amount of working capital. Here are some addition questions to ask to be sure that buying an insurance agency is the right move.
In addition to the factors listed above, if at all possible, get to know the staff before purchasing an insurance agency (if the purchase includes a transfer of personnel). Find out what kind of employee retention rate you can expect and try to get a good feel for how well the current staff works together. If you have to bring in all new employees when you make the purchase, it could cause a significant disruption and could cost you customers.
Regardless of whether you are a buyer or a seller, financing the transfer of an insurance agency or book of business generally is the biggest hurdle. Traditional lenders look for high-dollar collateral, like buildings and equipment, to finance a sale, and most buyers don’t have the hard assets needed for a loan without putting their personal assets at risk. Working with a seasoned business broker like Springtree Group (STG) can help you find a qualified buyer or seller whose interests match your own, and navigate the complexities of the due diligence process, as well as line up appropriate financing solutions to keep the deal on track.
Springtree Group has long-standing relationships with numerous niche lenders, as well as traditional banks and private equity firms that specialize in these kinds of transactions, and can structure a financial arrangement that works for both the buyer and the seller. With decades of experience in the insurance industry, our team has the experience and know-how to vet the purchase properly and secure a qualified business acquisition.
We are happy to recommend business resources for insurance agencies and brokerages seeking agency funding, sales & marketing support, legal counsel, and other information to support the success of their firm. To discuss your agency needs, please call Springtree Group at (972) 395-8811 or contact us online. We look forward to assisting you in growing your independent agency or brokerage firm.