Independent Agencies Sales Alerts – June 2018 Edition

As we close out the first half of 2018, national insurance agency M&A activity so far this year is trending on par with the hectic pace experienced in 2016 and 2017. Our research reveals three primary drivers of the strong activity:

  • Increased demand from the participation of the Private Equity Group (PEG) sector.
  • Favorable demographics for outgoing transition within the current agency owner population.
  • Historically low lending interest rates.

It is no surprise that the seller’s market for independent agencies continues to be prevalent in large part because of the PEG involvement as well as the potential for very positive returns. We continue to view an ongoing neutral market in the captive arena.

Our sources for potential opportunities for you come through our website attraction programs (SEO), in-house research, our external research group, broken financing deals, telemarketing activities and inbound direct contact by sellers. This pipeline is supplemented by our network of consultants, attorneys, CPAs, loan underwriters, DOIs, PEGs, strategic partners and our ever-growing group of more than 5,000 sell-side intermediary relationships.

The listings below are a sample of some of the new independent insurance agencies for sale discovered through our sources during the last 30 days. Upon request, we will provide our Registered Buyer clients access to previous month’s and off cycle listings.

SHOP A: Dallas, Texas – This is an exciting opportunity for a firm that wants to add a fully insured employee benefits book of business to their portfolio. This is a book roll only, no expenses or employees to worry about. Clients are located in the Dallas Fort/Worth Area. Super direct markets including, BCBS and United Healthcare. Asking Price 2.5X of revenue / Reported Revenue $131K.

SHOP B: New York Metro – A perfect opportunity to own and operate an established brokerage general agency/MGA company. This organization has 30+ years of experience in ALL phases of financial sales, marketing, case design, policy renewal underwriting. The company is made up of 8+ employees and 1500 agents and majority of them work remotely. Reported Revenue is $2.1MM / Asking Price TBD.

SHOP C: Boston, Massachusetts – A full-service general Insurance Agency insuring hundreds of clients in the Boston area. The agency serves individuals, families, and businesses on a total account basis for all lines of insurance. They offer a complete line of insurance products including Auto Insurance, Home Insurance, Business Insurance, Life Insurance and Benefits. This agency is one of the leading Independent Insurance Agencies in the Boston area. Reported Revenue $123K / Asking Price TBD.

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 North America. We also proudly serve customers in South America, Europe and the Bahamas. Please call (972) 395-8811 or use our online contact form to request additional information on services and opportunities.