While it is possible to grow your insurance agency organically, the potentially for growth via acquisitions will garner you much faster results. The value in agency acquisition as a growth strategy is four-fold, in that agency owners can:
- Gain “critical mass,” allowing them to increase commissions and bonuses within their teams;
- Expand into more geographic regions and insurance markets;
- Fill in any gaps in their existing growth plan;
- Make better use of resources to improve overall operating efficiency.
Our Registered Buyers are the first to know about new agencies for sale because Springtree Group’s telemarketing and outreach teams have one job: putting out feelers for potential opportunities for our clients. We also constantly have an ear to the ground listening for deals that fell through. Additionally, our leadership team works closely with our network of attorneys, CPAs, financial consultants, DOIs, PEGs – and sellers themselves – to be the first to know when agency owners are considering selling.
Due to the confidential nature of selling an insurance agency, the sale of approximately 90% of agencies is never publicly announced. What this means for potential buyers and agency owners who want to grow via acquisition is that it can be frustrating when there appear to be very few agencies that are actually available for purchase. Because Springtree Group works in a very specific space in the insurance industry, we are able to find agencies for sale even when no one else can.
If growth through acquisition is part of your 2019 business plan, it’s in your best interest to begin the process ASAP. While agency acquisition is a surefire way to speedily boost your business, the process of finding the right agency (and seller) along with arranging financing can take months.
Today’s post describes three new listings available to Springtree Group. Upon request, we will provide Registered Buyers with access to our full list of agencies for sale as well as all previous monthly and off cycle listings.
SHOP A: Northeastern Colorado – This 20-year-old P&C agency is located in a highly desirable city in NE Colorado. Made up of personal lines, auto & home and commercial (personal lines 85%, commercial lines 15%), this agency has a book of loyal clients. All Direct Markets including Travelers, Progressive, Kemper, Dairyland and more. Reported Revenue $180K / Asking price $400K. Tracking Code: DCORA
SHOP B: Southwestern Oregon – An established, 28-year-old, very stable full-service P&C agency is now available for sale in SW Oregon. Product offerings include personal lines, home & auto and multipurpose commercial P&C insurance. Commercial lines = 45%; personal lines = 55%. Top markets include Foremost, Safeco, Allied, Progressive and more. Reported Revenue $205K / Asking price $420K. Tracking Code: DORRD
SHOP D: DFW Texas – A well-established, 35-year-old Property and Casualty business in North Texas is now for sale. This shop is located a short drive south of the DFW Metroplex. This book is predominantly made up of preferred personal lines, auto, and home policies. This shop includes direct appointments with Hochheim Prairie, Progressive, Travelers and more. There is considerable value to the Hochheim Prairie contract. Reported Revenue $157K / Asking price $353K. Tracking Code: STXJM
Please note: This listing publication includes only a few of the agencies that we have to share with you. To learn more about additional listings in South Central Kansas, Texas (Houston & West Texas), Southeast South Carolina, Central Valley, California, Central Ohio, Western Florida, Navajo County Arizona, Maryland and more, reach out to us via email at Sam@SpringtreeGroup.com.