Welcome to the August edition of the STG Insurance Agent and Broker Sales Alerts. Activity for this time of year is average to good, average deal size however is smaller than normal. There continues to be a seller’s market for the acquisition of independent agencies. It is very much a buyer’s market in the captive arena which is very robust. The firming of P&C pricing in most sectors is causing our Strategic Partners to predict that selling multiples will lift in anticipation. The listings below are a sample of some of the new independents provided to us by sell side brokers or discovered through our research during the last 30 days. Our clients have access to previous month’s listings upon request.
In our view the most effective tactic in acquisition target development is a multi-level and joint endeavor, using the national approach that STG provides in concert with the “boots on the ground” local market intelligence that only the client has access to. STG provides clients additional tools to access the 90% of the sellers that are not openly and publically communicating their intention to sell.
SHOP C: St. Lucie, Florida — Seven year old independent P&C agency. Asking Price$1.2M / Reported TTM commissions $615K. Carriers include Modern USA, American Integrity, American Traditions and Foremost. Niche market with 90% retention rate. Three employees.
SHOP D: La Puente, California — Seven year old independent Auto & Truck Insurance Agency for sale. Asking Price $150K / Reported Revenue $240K (both commission and broker fees) / Reported WAP $1.5 Paperless agency management system. 1100 PIF.
SHOP E: Austin, Texas — Independent commercial P&C agency with a commercial trucking focus. Asking Price $650K / Reported Revenue $402K (not charging Fees). Primary markets include Progressive, National Interstate, Victoria Insurance, Kemper, ASI Lloyds, Republic Group and others. The company operates in Texas only at this time.
SHOP M: Seattle, Washington — Three year oldIndependent personal lines P&C insurance agency. Asking Price $100K / Revenue $80K / WAP $860K. Primary insurance markets include The Hartford and Travelers. Online Agency Management System. Good bolt on opportunity.
STG provides a complete list of insurance agencies for sale each month to our M&A service package clients. You must contract with Springtree Group to receive this listing. Being associated with STG provides you access to the strongest array of M&A and financial tools and services available to support your agency acquisition, perpetuation and operational needs in any part of the U.S. Please visit our website for additional information on services and opportunities. Please call (972) 395-8811 for additional information on our services, including agency financing programs, and new buying and selling opportunities.