Welcome to the November 2014 edition of the STG Insurance Agencies Sales Alert. Current national agency M&A activity continues to trend upward as we finish out the second half of the year. The seller’s market for independent agencies continues to be prevalent.
Overall agency valuations are improving as the economy continues to recover. There are an increasing number of well-funded bidders in the market as well as increase in Private Equity interest in purchasing successful agencies. Both of these drivers are pushing up multiples for most agencies.
Our list of potential opportunities comes through our growing network of more than 5,000 sell side intermediaries, broken financing deals, and our research activities. This pipeline is supplemented by our network of consultants, attorneys, CPAs, bankers, DOIs, PEGs and direct contact by sellers. 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 clients access to previous month’s and off cycle listings.
SHOP A: New Jersey — An established 14-year-old independent P&C agency is now for sale. The shop has two locations both accommodate walk in’s. This agency provides coverage for auto, home and commercial customers. Primary insurance markets include PSI, AAA, Progressive, Travelers and others. Asking Price $750K / Reported Revenue $500K / 2700 PIF.
SHOP B: South Florida — A four-year-old established independent general multi-line insurance agency is now for sale. Major insurance markets include Citizens, Fidelity, Foremost, Mercury, Progressive and more. 80% personal and 20% commercial. Asking Price $250K / Reported Revenue $160K.
SHOP E: Arizona — An established independent P&C insurance agency is now up for sale. Focused on preferred personal lines. Major insurance markets include Travelers, Met-Life Auto & Home, Mercury, Great American and others. Agency Management System is TAM. Asking Price $240K / Reported Revenue $120K / WAP $1MM.
SHOP H: Oregon — A fifteen year old very well established Independent preferred Insurance Agency that is focused on the trucking niche. Primary markets include Hartford, Travelers, Safeco, and more. 90% Commercial and 10% personal lines. Asking Price $2MM / Reported Revenue $965K / WAP $10MM.
Being associated with STG provides you access to the strongest array of M&A, agency lending tools and financial services available to support your acquisition, perpetuation and operational needs in any part of North America. For additional information on services and opportunities, please contact Springtree Group at 972.395.8811 or contact us online.