Welcome to the May edition of the STG Insurance Agent and Broker Sales Alerts. National M&A activity so far this year is trending higher than average when compared over the last five years and on par with the record-setting 2015 pace. The seller’s market for independent agencies continues to be prevalent, with an ongoing neutral market in most captive arenas.

The Private Equity money continues to poor into the insurance space, while the banks have shown a sustained pull back from agency ownership, a trend that started in 2005. Primarily because of the Private Equity positioning in the M&A marketplace, the acquisition values have never been higher.

In this difficult acquisition market, it takes a concentrated mix of tactics to develop adequate deal origination. We view this process as a multi-level and joint endeavor. A principled national approach that STG provides in concert with the “boots on the ground” local market intelligence that only the
Registered Buyer has access to, is a good starting point. To this mix, STG adds several robust tools, including seller broker administration, outbound telemarketing programs, in-house research capabilities, and other tools directed at reaching the 90 percent of the market that is hidden from public involvement.

The listings of insurance agencies for sale below are a sample of some of the new independents discovered through our research group or provided directly 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: Richardson, Texas – Independent Auto and Home agency located in Richardson, Texas. Agency was established in 2005 and has very few expenses. Agency focus is auto and homeowner policies. Agency consist of 80% Auto and 20% Home and is licensed and in good standing in the state of Texas. This is a great agency with long-term customers looking for someone to step in and provide direct leadership and vision from which to grow and profit. Asking Price $225K / Reported Revenue $125K.

SHOP B: DFW, Texas – An established 17-year-old independent Standard P&C agency. This business is made up of trucking clients only. Major insurance markets include Paramount, A-One and many more. Asking Price $1MM / Reported Revenue $500K.

SHOP C: East Texas – An established 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. Asking Price $700K / 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 (972) 395-8811 or contact us online for additional information on services and opportunities.