Welcome to the August 2015 edition of the STG Insurance Agency Sales Alerts. The independent agencies seller’s market continues to be prevalent with captive agencies being natural. The Pepperdine Private Capital Market Project attributes the increase in businesses sold to consumer and market confidence and low interest rates for buyers.

Overall agency valuations are improving as the economy continues to recover. An increasing number of well-funded bidders are in the market, including strong Private Equity interest in purchasing successful agencies. All these factors are driving up prices for the larger 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 and our research activities. This pipeline is supplemented by our network of consultants, attorneys, CPAs, bankers, DOIs and PEGs, as well as through direct contact by sellers. STG provides you with the broadest insight available into new buying opportunities in the insurance space.

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 B: North East Texas — A very well established 41-year-old independent health insurance agency is on the market. This agency has a hometown feel and long presence in East Texas with the bulk of its clients in DFW. Major insurance carriers include Blue Cross Blue Shield, Transamerica and United Healthcare. Asking Price TBD / Revenue $168K.

SHOP C: Mississippi — A four-year-old independent personal lines P&C agency for sale. This is an ideal opportunity for an independent agent new to the industry to get established quickly. Seller will carry some paper. Asking Price $150K / Reported Revenue $65K / WAP $600K.

SHOP D: Illinois — A 53-year-old independent Chicago Land commercial agency is for sale. The owner is seeking to sell his business to a larger agency and continue as a producer. This niche agency is very easy to run. Asking Price $187K / Reported Revenue $150K / $1M WAP.

SHOP E: Southern California — Well established health insurance agency brokerage. Owner is retiring. This is a great opportunity to buy a recurring base of individual health clients. This would be a significant opportunity for a team to cross selling personal P&C lines into this book. Asking Price $1.2M / Reported Revenue $710K.

 

 

Other opportunities this month exist in Arizona, Southern California, North Texas, Louisiana, the Rocky Mountains, and Washington State.  STG is the U.S. leader in providing insurance entrepreneurs the strongest array of M&A services and agency lending tools. Our full service platform of financial services is available to support acquisition, perpetuation and operational needs across North America. For additional information on services and opportunities, call Springtree Group at 972-395-8811 or contact us online.