The independent agencies seller’s market continues to be prevalent across the U.S., while the captive agency market is neutral at best. We attribute the continuing strength in agency M&A activity to significant consumer and market confidence in this space and low 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.
Our source for potential opportunities for you come through our ever-growing group of more than 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 and PEGs, as well as direct contact by sellers. STG provides you with the broadest insights available into new buying opportunities in the insurance space.
The listings below are a sample of some of the independents discovered through our research or provided to us during the last 30 days, which includes insurance agencies for sale from Florida to California. Upon request we will provide our clients access to previous month’s and off cycle listings.
SHOP A: New Mexico – (Price Reduction!) This shop is a well-established independent insurance agency. The product portfolio is 90% Standard General Lines. From this location the owner can market all of the Texas panhandle as well as New Mexico. Great office location with strong walk-in traffic. Major insurance markets include Hartford, Travelers and Safeco. Asking Price $125K / Reported Cash Flow $97K.
SHOP B: San Antonio, Texas – (Back on the market and a Price Reduction!) A well-established, 11 locations, non-standard independent P&C insurance agency for sale. Don’t miss this opportunity to own an established agency in the heart of San Antonio! Markets include: ACCC Gen Agency, American Access, United Auto, Aggressive, Hallmark, Texas All Risk, Newport and American SW. Asking Price $1.5MM / Reported Revenue $1.1MM.
SHOP D: East Texas – (Price Reduction!) Independent mixed standard and non-standard P&C general lines agency is now for sale. This shop holds appointments in Louisiana and Texas. Seller will consider some paper and is willing to stay on as a producer. Asking Price $600K / Reported Revenue $265K.
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. Please call us at (972) 395-8811 or contact us online for additional information on services and opportunities.