Independent Agencies Sales Alerts – February 2013 Edition

Welcome to the February 2013 edition of the Insurance Agent and Broker Sales Alerts. Typical for this early point in the annual business cycle we are seeing a rebuilding of activity. The Q4 turmoil created by the anticipated capital gains tax changes has died down and fresh seller leads are beginning to return to the market.

Please remember that access to sellers can be difficult because open exposure of the desire to sell can be a concern for sellers, due to the impact this information could have on insurance carriers (markets), employees, clients and the competition. As evidence and as reported by our strategic partners Marsh Berry, only 10% of all deals in the $1M range are publicly known.

Our ever growing group of nearly 5,000 business intermediaries provides seller leads as they become available. We also access our network of consultants, attorneys, CPAs, bankers, DOIs, Web services, VC and private equity in an effort to provide you with insight into new buying opportunities in the insurance space. Here are several sample listings from the February 2013 report:

SHOP A: El Paso, Texas — Highly profitable non-standard P&C agency. Reported revenue $350K (included $90K in Fees) / Asking Price $556K. Operating for over 14 years in El Paso with two locations. Direct carrier contracts with Infinity, Progressive, American Southwest and others.

SHOP C: Salem, Oregon — Non-Standard Insurance Agency. Reported Revenue $115K / Asking Price $175K (recent reduction from ($230K) 75% of the book of business is Auto with the balance being home and commercial. Store front office with signage. Strong bolt on opportunity.

SHOP E: East Central, Florida — Independent standard property and casualty agency. Reported Revenue $625k / Asking Price $1.2M. A 50/50 mix of commercial and personal lines business. 25 direct appointments in total plus contracts with nearly two dozen wholesale and E&S brokers. A detailed confidential summary will be provided to qualified parties. Partial seller financing anticipated.

SHOP F: Oxnard, California — Non-Standard Auto Preferred Insurance Agency. Reported Revenue $600K ($100K in Broker fees) / Asking Price $1.5M. 95% personal lines. Markets represented include Mercury, CSE, Hillstar, Unitrin, Commerce West, Bristol West, McGraw, Progressive, GMAC, and Infinity. 5,000 client files.

These are just a few of the numerous listings we have received for insurance agencies for sale. Being associated with STG provides you access to the strongest array of M&A and financial tools and services available to support your acquisition, perpetuation and operational needs in any part of the U.S.

Please call us at (972) 395-8811 for additional information on services and opportunities.