Independent Agencies Sales Alerts – March 2013 Edition

Sales activity for independent insurance agencies and brokerages for this time of year is average. The year-end turmoil created by the anticipated capital gains tax changes and the concerns about governmental involvement in the healthcare system have lessened.

Regardless of the market conditions, independent insurance agency owners often are reticent to make known their desire to sell, because this information could have a negative impact on their relationship with insurance carriers , employees, clients and the competition. As reported by our strategic partners Marsh Berry, only 10 percent of all deals in the $1 million range are publicly known.

The most effective tactic in target development is a multi-level and joint endeavor, using the national approach that Springtree Group provides, in concert with the “boots on the ground” local market intelligence to which only the client has access. By employing this approach, we are able to bring our clients new listings of buying opportunities each month. Here is small sample of the current month’s listings:

SHOP A: Dallas, Texas — 32 year old Independent Non-Standard Personal Lines in Southwest Dallas. Reported Revenue $165K (includes $50K in Broker fees) / Asking Price $175K. (This is a price drop from $275K.) Some direct contracts but mainly writes thru G/As.

SHOP C: Atlanta, GeorgiaIndependent healthcare insurance agency and brokerage operation with four employees. Asking Price $1.1M / Reported Revenue $327K. Their active client base is made up of 1500 small business groups, individuals and Medicare.

SHOP G: Tarzana, California — Seven-year-old independent insurance agency selling health, life, auto, business, and home insurance company. Most major markets represented. Reported Revenue $324K / Asking Price $695K. The company specializes in health and life insurance and has over 2,000 active clients. 90% of the company’s income is residual.

SHOP H: Long Island, New York — 13-year-old preferred P&C book for sale. A unique niche play that does business in all states. 99% of the business is direct billed. Asking Price $200K / Reported Revenue $105. Easy book roll.

Additional opportunities are available in Florida, Texas, and New Jersey, among other states. As a client of Springtree Group, you have 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.